Secure Term MVA Fixed Annuity IV Fidelity 6-Year review

Yes, for a specific buyer. If you're a Fidelity client in California or New York who wants to lock in a guaranteed rate for six years with minimal counterparty risk, this is a well-constructed product from a carrier with no peer on financial strength. If you live outside CA or NY, don't work through Fidelity, want access to your money before the surrender period ends, or are bothered by the complexity of a market value adjustment, none of those issues can be worked around — you'd want a different product.

The rational case is straightforward: you're locking in a guaranteed multi-year rate, backed by a carrier rated A++ by A.M. Best, with no equity exposure and no rider complexity to pay for. At $50,000 minimum and rates as of May 2026 of 4.55% on standard premium and 4.80% on $100,000 and above, this competes reasonably within the MYGA peer group. For a Fidelity customer who is already consolidating assets on that platform and wants the safety of a New York Life contract, the channel alignment is a feature rather than a restriction.

I think this product is best suited for someone in the 55-75 age range, either retired or near retirement, with no-touch savings they genuinely don't plan to access for six years. The $50,000 floor and the Fidelity-channel requirement mean this is not a product for a first-time annuity buyer with modest assets. It fits someone in a qualified or non-qualified account who values carrier stability above rate maximization and is comfortable with a contract that trades some liquidity flexibility for a locked yield.

The product is also worth considering for inherited IRA assets — the 0-85 issue-age range on inherited accounts is broader than many carriers allow, which opens options for beneficiaries taking required distributions across a defined period.

This is a multi-year guaranteed annuity — the insurance equivalent of a CD, but with tax deferral during the accumulation period and the ability to annuitize into income at maturity. You are not getting market exposure, index-linked upside, or rider benefits. What you are getting is a contractually locked interest rate, guaranteed for six years by New York Life Insurance and Annuity Corporation, which in turn is backed by its parent, New York Life Insurance Company, rated A++ by A.M. Best.

The "IV Fidelity" designation is not a sub-brand — it signals this is the fourth-generation version of the Secure Term MVA product, in a form specifically contracted through the Fidelity distribution channel. That channel arrangement affects who can sell it and where, but it doesn't change the underlying mechanics of the contract.

The core feature is a fixed crediting rate locked for the full six-year term. New York Life sets three rate tiers: a standard rate for premiums under $100,000, a higher rate for premiums of $100,000 or above, and the same higher rate at $1,500,000 or above. As of the May 2026 rate sheet, those are 4.55% and 4.80% (with both upper tiers at 4.80%). The rate applies for the full six years — there are no renewal-rate resets within the term, no cap structures, and no participation rate complexity.

The guaranteed annual return floor (MGSV) is 0.05% — this is the contractual backstop that defines the minimum value New York Life must preserve. In practice the credited rate will almost always be well above this floor; it is the contractual minimum, not the expected yield.

The secondary feature worth understanding is the free withdrawal provision: 10% of account value, available immediately from contract inception, with the requirement that at least $2,000 remain in the account. That's more accessible than some MYGAs, which restrict free withdrawals to after the first contract year. Being able to take 10% immediately provides a modest liquidity safety valve if circumstances change, though it won't cover a large unplanned need.

The death benefit is the full account value, which is a clean, simple provision. There is no complex death-benefit structure to navigate, and it means the named beneficiary receives the full accumulated value without a surrender charge or MVA adjustment at death.

The liquidity picture here has two layers, and it's worth understanding both before committing.

The first layer is the standard surrender charge schedule: 7% in years one through three, stepping down to 6% in year four, 5% in year five, and 4% in year six. After that, no charge. A 10% free withdrawal (subject to the $2,000 minimum balance requirement) is available immediately and does not trigger the schedule.

The second layer is the market value adjustment — MVA. This is the part that often surprises people. An MVA is an interest-rate-sensitive adjustment applied on top of the surrender charge whenever you withdraw above the free amount during the surrender period. If interest rates have risen since you bought the contract, the MVA works against you, increasing your effective exit cost. If rates have fallen, it works in your favor. You cannot know in advance which direction it will move. In a rising-rate environment, the combination of surrender charge and negative MVA can meaningfully exceed what the schedule alone would suggest.

The MVA is not unique to New York Life — it is standard on many fixed annuities — but it is important to factor in when assessing whether a 6-year commitment is actually something you can hold. If you have a realistic possibility of needing more than 10% of this money before year six, an MYGA without an MVA may be a better fit.

There are no base contract fees, no rider fees, and no spread charges — New York Life earns its margin through the difference between what it credits to your account and what it earns on the underlying invested assets. That is the standard fixed annuity model. For this product, it is clean: you see the credited rate, that is the rate you earn, and there is no fee eroding it.

The real cost of this product is the surrender schedule plus the MVA risk, not a fee line item. If you hold to maturity, the cost is zero beyond the opportunity cost of tying up the money. If you exit early, the cost can be material, especially if rates have moved against you.

The Fidelity distribution channel requirement is a structural constraint worth naming. New York Life makes this version available only through Fidelity-contracted advisors. That's not a fee, but it does limit your options for advice shopping and ongoing relationship management to the Fidelity ecosystem.

Legal Entity: New York Life Insurance and Annuity Corporation

Parent: New York Life Insurance Company

A.M. Best Rating: A++

New York Life Insurance Company holds an A++ (Superior) rating from A.M. Best — the highest rating the agency awards. This is not a marketing distinction. In a product category where counterparty risk is the primary concern (you are lending your money to an insurance company for six years), carrier financial strength is a legitimate differentiator. Very few carriers in the MYGA market carry this rating.