Deferred Gift Annuities
(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 MDA , 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:
|
Annuity
Rate |
Annuity
Amount |
Tax-Free
Income |
Charitable
Deduction* |
Year
1 |
9.9% |
$990 |
$237 |
$5,294 |
Year 2 |
9.4% |
$940 |
$238 |
$5,060 |
Year
3 |
8.8% |
$880 |
$238 |
$4,899 |
Year 4 |
8.3% |
$830 |
$237 |
$4,533 |
Year
5 |
7.8% |
$780 |
$236 |
$4,533 |
Total |
|
$4,420 |
$1,186 |
$24,490 |
|
| 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 800-223-6011 so that we can assist you through every step of the process.
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