To open an account, fund it with a lump sum or rollover. Your money earns interest based on how the S&P 500 index performs, up to a set cap rate.
What's a fixed index annuity?
A fixed index annuity is a way to plan for retirement. It lets your money grow based on how a market index does, up to a set amount. And your money isn't at risk if the market goes down.
Because of this, it can offer more opportunity for protected growth than a traditional fixed annuity.
Secure your retirement with a USAA Fixed Index Annuity
Video Duration: 1 minute 34 seconds
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Are you looking for a retirement plan that offers growth, security, and a clear path to income? Meet the USAA Fixed Indexed Annuity.
What is a fixed index annuity: Elapsed time 9 seconds [00:09]
The USAA Fixed Indexed Annuity grows your money based on the performance of the S&P 500 stock market index.
You capture 100% of positive index performance up to a 10.5% cap rate. Plus, your principal is protected from market downturns.
For even more security, you can put some of your annuity balance into a fixed account with a fixed interest rate. This will give you steady growth.
A fixed indexed annuity is an excellent way to build tax-deferred savings for the future and offers more opportunity for protected growth than a traditional fixed annuity.
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When you're ready to convert your fixed index annuity into a reliable income stream, you can annuitize all or part of your contract.
This means you can turn your money into a reliable source of income that pays you to cover your living expenses and enjoy your retirement.
Backed by USAA’s A++ financial strength rating from A.M. Best, you can have confidence that your savings are secure.
Ready to achieve your retirement goals? Visit usaa.com/fia or call (800)-833-9847 to speak with a USAA Retirement Income Specialist today.
USAA, serving you always.
Description of visual information [For amounts allocated to the Indexed Account, the Cap Rate is the maximum Indexed Interest Rate for the Interest Crediting Period and is declared annually at our sole discretion. Examples given are hypothetical illustrations and not necessarily an indication of the benefits or features of any USAA product.
Rate effective September 10, 2026. Your actual rates will depend on your physical address state. Interest rates are subject to change, but they'll never be less than the guaranteed minimum. The Cap Rate for the initial interest Crediting Period will be the higher of the rate in effect on the day we receive your signed application or the effective date of your contract, as long as we receive your money within 30 days of your signed application. This is known as an interest rate lock.
The minimum guaranteed interest rate is subject to change and may vary by product and state. The minimum guaranteed rate is fixed and will not change after the contract is issued.
Guarantees apply to certain insurance and annuity products and are subject to product terms, exclusions and limitations and the insurer's claims-paying ability and financial strength.
Money not previously taxed is taxed as income when paid. Withdrawals before age 59½ may be subject to a 10% federal tax penalty.
As of June 1, 2026, A.M. Best: A++, Superior (highest of 16 possible ratings); Moody's Investors Service: Aa1, Excellent (second highest of 21 possible ratings); S&P Global Ratings: AA, Very Strong (third highest of 21 possible ratings). Ratings are subject to change. Ratings apply to USAA Life Insurance Company and USAA Life Insurance Company of New York not to the products or services they provide. Company ratings represent an opinion of financial strength and the company's ability to meet ongoing obligations to policyholders. Ratings refer to the claims-paying ability of the insurance company and do not reflect the safety or performance of any product. The rating agencies listed are independent of each other and use proprietary evaluation criteria and ratings scales. For the latest Financial Strength Ratings, visit www.ambest.com, www.moodys.com, and www.spglobal.com/ratings.
An annuity is a long-term insurance contract issued by an insurance company designed to provide a retirement income stream for life. Once the contract principal is converted into an income stream, you will no longer have access to your principal as a lump sum. Terms, conditions, limitations and surrender charges may apply.
Fixed Indexed Annuity (FIA): Forms ICC2399755 06-23, ASP504431ST 07-23, ASP504389FL 07-23, ASP504351CA 07-23. Not available in New York.
Fixed Indexed Annuity (FIA) material is not intended for residents of Idaho, North Dakota or Oregon.
The "S&P 500®" is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by USAA LIFE USAA LIFE INSURANCE COMPANY AND USAA LIFE INSURANCE COMPANY OF NEW YORK. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by USAA LIFE INSURANCE COMPANY AND USAA LIFE INSURANCE COMPANY OF NEW YORK. USAA Fixed Indexed Annuity is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500®.
Learn about USAA's use of Artificial Intelligence at usaa.com/ai.
Life insurance and annuities provided by USAA Life Insurance Company, San Antonio, TX and in New York by USAA Life Insurance Company of New York, Highland Falls, NY. All insurance products are subject to state availability, issue limitations and contractual terms and conditions. Each company has sole financial responsibility for its own products.] End of description.
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Key details about the USAA Fixed Indexed Annuity
We offer a 100% participation rate, which means you get all of the index gains up to the cap rate. Plus, you can take out up to 10% of your money each year for free after the first year.
Current cap rate
§%
A cap rate is the highest interest you can earn based on market performance over a set period.
Term
7 years
This is how long your money must stay in the account before you can avoid surrender charges.
Minimum to open
$100,000
This amount makes sure you have enough money to earn interest and benefit from market gains.
Get a guaranteed interest rate on part of your fixed index annuity.
Fixed account interest rate
§ %
This is the guaranteed rate you earn on the fixed portion of your annuity.
After the first year, the rate may change, but it’ll never drop below the minimum guaranteed rate.
How a fixed indexed annuity reacts to market volatility
The return on a 401(k) invested in the S&P 500® index goes up and down with the market. With a USAA Fixed Indexed Annuity, your principal is protected. Let’s explore 3 market examples.
Market example |
Up market |
|---|---|
USAA Fixed Indexed Annuity interest* |
You earn interest up to the cap rate. In an up market like 2024, you could’ve earned §% interest on your account value. |
401(k) invested in S&P 500® Index |
Your plan is dependent on market performance. In an up market like 2024, your account could’ve gained up to 23.31% in value. |
Market example |
Flat market |
USAA Fixed Indexed Annuity interest* |
You can earn interest between 0% and the cap rate. In a flat market like 2006, you could’ve earned 3.53% interest on your account value. |
401(k) invested in S&P 500® Index |
Your plan is dependent on market performance. In a flat market like 2006, your account could’ve gained up to 3.53% in value. |
Market example |
Down market |
USAA Fixed Indexed Annuity interest* |
You won’t earn interest, but your principal stays safe. In a down market like 2008, you could’ve earned 0% interest and kept your full principal. |
401(k) invested in S&P 500® Index |
Your plan is dependent on market performance. In a down market like 2008, your account could’ve lost up to 38.49% in value. |
How a fixed indexed annuity reacts to market volatility
The return on a 401(k) invested in the S&P 500® index goes up and down with the market. With a USAA Fixed Indexed Annuity, your principal is protected. Let’s explore 3 market examples.
| Market example | USAA Fixed Indexed Annuity interest* | 401(k) invested in S&P 500® Index |
|---|---|---|
Up market |
You earn interest up to the cap rate. In an up market like 2024, you could’ve earned §% interest on your account value. |
Your plan is dependent on market performance. In an up market like 2024, your account could’ve gained up to 23.31% in value. |
Flat market |
You can earn interest between 0% and the cap rate. In a flat market like 2006, you could’ve earned 3.53% interest on your account value. |
Your plan is dependent on market performance. In a flat market like 2006, your account could’ve gained up to 3.53% in value. |
Down market |
You won’t earn interest, but your principal stays safe. In a down market like 2008, you could’ve earned 0% interest and kept your full principal. |
Your plan is dependent on market performance. In a down market like 2008, your account could’ve lost up to 38.49% in value. |
The return on a 401(k) invested in the S&P 500® index goes up and down with the market. With a USAA Fixed Indexed Annuity, your principal is protected. Let’s explore 3 market examples.
| Market example | Up market |
|---|---|
| USAA Fixed Indexed Annuity interest* | You earn interest up to the cap rate. In an up market like 2024, you could’ve earned §% interest on your account value. |
| 401(k) invested in S&P 500® Index | Your plan is dependent on market performance. In an up market like 2024, your account could’ve gained up to 23.31% in value. |
| Market example | Flat market |
| USAA Fixed Indexed Annuity interest* | You can earn interest between 0% and the cap rate. In a flat market like 2006, you could’ve earned 3.53% interest on your account value. |
| 401(k) invested in S&P 500® Index | Your plan is dependent on market performance. In a flat market like 2006, your account could’ve gained up to 3.53% in value. |
| Market example | Down market |
| USAA Fixed Indexed Annuity interest* | You won’t earn interest, but your principal stays safe. In a down market like 2008, you could’ve earned 0% interest and kept your full principal. |
| 401(k) invested in S&P 500® Index | Your plan is dependent on market performance. In a down market like 2008, your account could’ve lost up to 38.49% in value. |
*This example assumes you put 100% of your money into the indexed account.
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How does a fixed index annuity work?
Steps to complete How does a fixed index annuity work?
Fixed index annuity FAQ
There are several ways you can add money to a USAA Fixed Indexed Annuity.
- Direct rollover — Move money from an employer-sponsored retirement plan, like a 401(k) or Thrift Savings Plan.
- IRA transfer — Move money from one of your IRAs, like a brokerage account, mutual fund or CD.
- Indirect rollover — Take money from a qualified retirement account, like an employer-sponsored retirement plan or IRA and get the check mailed and made payable to you. Once you get the check, you have 60 days to send the total distributed amount to USAA.
- 1035 exchange — Move money tax-free from an existing nonqualified annuity contract or life insurance policy. The owner and annuitant must be the same for each contract.
- Cash transfer — Transfer cash from a brokerage, mutual fund or bank account to a USAA annuity.
You won’t lose the money you put into a fixed indexed annuity. The interest you earn is also safe. Its backed by the financial strengths of USAA Life Insurance Company.
Deferred annuities funded with pretax money could be taxable as ordinary income when you make a withdrawal. This applies when your annuity is funded from sources such as a traditional IRA or pretax 401(k).
But if your deferred annuity is funded from a Roth IRA or Roth 401(k), withdrawals will be tax-free as long as you have had your money in a Roth IRA or Roth 401(k) for at least 5 years and are age 59½ at the time you make a withdrawal.
Distributions from a deferred annuity could be taxed as ordinary income if the annuity was opened as nonqualified, meaning the funds didn't come from a qualified retirement plan like an IRA or 401(k).
Both are deferred annuities. The key difference between the two is how they earn interest. Fixed index annuities earn interest based on the performance of a stock market index. Fixed rate annuities earn a simple, set interest rate for a period of time.