Deferred Gift Annuity
Deduct Now, Retire with Income Later
A Deferred Gift Annuity allows you to delay the onset of annuity payments to a future date. This deferral gives you both a higher income rate and a larger charitable deduction than you could receive from an annuity paying you immediately. Many donors set payments to begin when they, or their spouse, will need additional income.
The deferred gift annuity is especially attractive if you are still in high-income years, and are looking for both tax deductions and additional income during retirement.
Example
You donate $10,000 of appreciated stock, originally purchased for $2,500, to a single life Gift Annuity with quarterly payments that are deferred to age 65. Assume an IRS discount rate of 6.0 percent.
Annuitant Age |
Age 40 |
Age 45 |
Age 50 |
Age 55 |
Immediate rate |
4.3% |
4.8% |
5.1% |
5.3% |
Deferred rate |
18% |
14.3% |
11.3% |
9.0% |
Annual payment |
$1,800 |
$1,430 |
$1,130 |
$900 |
Charitable deduction |
$3,838 |
$3,909 |
$3,973 |
$3,925 |
N.B.: Consult legal and tax advisors before making any decisions based on this information.
For More Information
If you are considering a deferred gift annuity, e-mail
us, complete the personal illustration
form, or call us at
800-338-3294.
- You receive an immediate income tax deduction for a portion of your gift.
- You can postpone your annuity payments until you need them.
- The longer you defer your payments, the higher your rate. In the meantime, the principal grows tax-free.
- You make a significant gift now that benefits both you and Columbia later.
Office of Gift Planning
gift.planning@columbia.edu
475 Riverside Drive
New York, NY 10015
(800) 338-3294
