Deferred Gift Annuity
Ways to Give
A deferred gift annuity provides all the annuity benefits, while providing an additional level of flexibility. With your gift today you can pick a date—1 year or more in the future—when you’d like your annuity payments to begin. The older you are when payments begin, the higher the rate of annual income.
Deferred annuities are available to donors age 50 and above; however, payments cannot start until the annuitant reaches age 60. Each payment amount is based on age, and the elapsed time between the date of the gift and the start of the annuity payment. This option will help build and diversify your retirement portfolio by providing:
- A high level of predictable future income, part of which is tax-free income that is guaranteed for life
- A charitable income tax deduction when you establish the gift
For example:
A 55-year-old donor who gives $10,000 for a deferred gift annuity selects payments to start at age 65. The chart illustrates what the payments would be if deferred for an even longer time.
|
If Started at Age |
Rate (%) |
Annuity ($) |
|
65 |
6.5 |
$ 650 |
|
66 |
6.6 |
$ 660 |
|
67 |
6.8 |
$ 680 |
|
68 |
7.2 |
$ 720 |
|
69 |
7.6 |
$ 760 |
|
70 |
8.0 |
$ 800 |
|
71 |
8.6 |
$ 860 |
|
72 |
9.0 |
$ 900 |
|
73 |
9.5 |
$ 950 |
|
74 |
10.5 |
$1,050 |
|
75 |
11.0 |
$1,100 |
If you would like to add even more flexibility to your planning, CRS also offers a flexible deferred gift annuity, which allows you to decide when your deferred annuity payments will start (within a determined time range).
For example:
Dennis, age 60, wants his income payments to start after he’s retired, but he’s not sure if that will be when he’s age 67 or age 72. He opens a flexible gift annuity. When he’s 67, he’ll be able to decide if he wants his payments to begin or if he wants to defer them until a later age.
Remember, your donation of cash or securities to establish a gift annuity is an irrevocable gift. Please consult with your professional advisor before making any decisions regarding gift annuities, including when you should start your payments.
You can use our online calculator to estimate the benefits you can enjoy with a CRS Deferred Gift Annuity plan.
To Learn More:
For more information about the advantages and payment options of a CRS Deferred Gift Annuity, please contact
Erin Mathews, Planned Giving Specialist [email protected] 800-235-2772, ext. 7409
