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.
|Income tax deduction||$ 30,110|
|Installment option at age 60 for 10 years||$ 11,851|
|Deferred annuity at age 60 for lifetime||$ 6,900|