Flexible Deferred Gift Annuity
A flexible deferred gift annuity gives you the best of both worlds! You can deduct your charitable gift when you create your annuity and defer the payments until you choose to receive them.
Since annuity payments start at a future time, your annuity rate will be higher the longer you defer your payments. Part of each payment may even be tax-free as a return of principal. Combining partially tax-free payments and tax savings from a charitable deduction makes this an attractive plan.
Capital Gains Tax Savings
If you own appreciated stock or real estate, you know that selling these assets will produce a taxable gain. These are the sorts of assets you could use to fund a flexible deferred gift annuity and avoid paying part of the capital gains tax. You benefit from fixed annuity payments for life. While a portion of those may still be taxed at capital gains rates, you may also enjoy partially tax-free payments! The partial tax avoidance and payments for life make a flexible deferred gift annuity an excellent option for you!
Are you planning for retirement but haven’t set a retirement date?
What if you could be flexible about your retirement date and defer unneeded funds for the future? Many annuities and deferred income plans require payments to begin on a fixed date. You often have to start taking income before you need it, which could mean higher taxes.
If you are looking for a flexible retirement plan and desire to help charity, a flexible deferred gift annuity may be just the solution for you. You can plan for retirement now and decide later when you want to begin receiving payments. Your payments will be fixed with rates based on your age when you elect to begin receiving income. Better yet, you will receive a current charitable income tax deduction.
Secure Income When You Need It
Samantha is 55 years old and not yet ready to retire, but she wanted to create security for the future. Her tax advisor recommended using her fluctuating stock to fund a flexible deferred gift annuity. She received a charitable tax deduction and the ability to begin receiving payments sometime in the future.
Samantha funds a $100,000 flexible deferred payment gift annuity with a target payout date at age 65. She liked that she could take a charitable tax deduction of $31,521 when her gift was made and have the flexibility to begin receiving payments when she was ready.