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Installment payment gift annuity example

Example - Installment payment gift annuity

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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