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Deferred Gift Annuity
(Gift example*) You have just turned 50, and your two children are now teenagers. You provide the bulk of your family's income and retirement savings. You and your spouse are in the 33% tax bracket, and you have reached the maximum contribution limit for your group pension plan.
You want to make a gift of $50,000 to The ALS Association , but you are finding it hard to locate the assets to make such a gift outright. You also are looking for ways to offset your high taxable income, and for additional sources of retirement income.
You decide that starting this year, you will create five deferred gift annuities of $10,000 each. Payments from all five annuities will commence when your spouse turns 65, thirteen years from now, and will continue for the balance of your lives.
Because the deferral periods will get shorter each year, the five annuities will have different income rates and charitable deductions. Here are the income and tax benefits of the five deferred gift annuities:
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Annuity
Rate
|
Annuity
Amount
|
Tax-Free
Income
|
Charitable
Deduction*
|
|
Year 1
|
9.7%
|
$970
|
$300
|
$2,235
|
|
Year 2
|
9.3%
|
$930
|
$299
|
$2,009
|
|
Year 3
|
8.8%
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$880
|
$292
|
$1,898
|
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Year 4
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8.3%
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$830
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$285
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$1,692
|
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Year 5
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7.9%
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$790
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$280
|
$1,692
|
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Total
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$4,400
|
$1,456
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$9,661
|
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| Click here to calculate the benefits a deferred gift annuity would give you.
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*This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.
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For more information
Email us, complete the personal illustration form, or call us at (888) 949-2577 ext. 212 so that we can assist you through every step of the process.
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