- DEFERRED GIFT ANNUITY
The Deferred Gift Annuity (DGA) provides a larger deduction and greater fixed income for life than other life-income gifts. This annuity can be used as a retirement planning vehicle to supplement existing retirement assets. It is most beneficial to donors who have already made the maximum contributions to their existing retirement plans. Many donors even create Deferred Gift Annuities on an annual basis to build retirement assets.
- fixed, lifetime payments that are partially tax free, beginning at designated age
- quarterly payments, to you and/or a loved one
- an immediate income tax deduction
- avoidance of capital gains tax (if directly funded with appreciated assets)
- reduction of estate and gift taxes
How It Works
You make a minimum gift of cash, securities, or other appreciated property. A deferred gift annuity is created with a simple contract. This type of gift provides fixed payments for life for one or two persons at a recommended rate based on your age, beginning at a selected date in the future.