Installment payment gift annuity example
Susan Jones, age 55, would like to take advantage of an income tax deduction this year by creating a deferred gift annuity. She would like to retire at age 60 and begin received payments then. She would like to continue receiving payments until age 70 ½ when withdrawals from her IRA account are required. She will not need the payments from her gift annuity when her IRA withdrawals begin.
| Contribution amount | $100,000 |
|---|---|
| Income tax deduction | $ 30,110 |
| Installment option at age 60 for 10 years | $ 11,851 |
| Deferred annuity at age 60 for lifetime | $ 6,900 |
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