A market value adjustment, or MVA, can change the amount available when money leaves certain annuity contracts. It is separate from a surrender charge. New York's insurance regulator explains that an MVA can be positive or negative.
The actual formula, applicable transactions and exceptions belong to the contract. Do not infer the adjustment's sign or size from a general statement that interest rates have risen or fallen.
Keep the components separate
| Component | Record to request | Question to resolve |
|---|---|---|
| Base value | Current insurer calculation | Which amount is being adjusted? |
| Surrender charge | Applicable schedule | Is a separate charge applied? |
| MVA formula | Contract provision | Which reference rates and dates enter it? |
| Remaining term | Insurer's calculation inputs | How does remaining duration affect the result? |
| Exceptions | Actual provision | Does any allowance or waiver apply? |
| Net payment | Dated exit illustration | What amount would actually be paid? |
An adjustment that increases one calculation does not mean the overall withdrawal is profitable or suitable. A positive MVA may coexist with other charges or tax consequences. A negative adjustment should not be silently described as just a surrender fee.
Request comparable illustrations
Ask the insurer for a calculation at the intended transaction date, identifying the assumed amount and all deductions. If comparing different amounts or dates, label each scenario. Do not combine a value from one statement date with a rate assumption from another.
For example, compare a partial withdrawal with a full surrender. Ask whether the MVA applies to both, whether a contract allowance changes the calculation and how remaining guarantees would be affected. The answer must come from the actual contract and insurer.
Preserve the explanation
Keep the formula reference, calculation date, inputs provided and written result together. Ask how long the illustration remains usable and what could change before processing.
Take the tax question to the appropriate professional separately. This guide does not calculate an MVA, forecast rates or authorize an exit. It creates a record that makes the insurer's explanation reviewable before a decision.
Related reading
Start with the retirement planning overview. Continue with income benefit base versus cash value or browse the learning topics.
Browse federal benefits, retirement and insurance topics or read how we prepare and check our guides.
Sources
- New York DFS: Annuity products, checked November 4, 2026
- NAIC: Buyer guide for deferred annuities (2022), checked November 4, 2026
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