Annuity Examples

Here is an example of a Single Life Annuity (Rates and Dollar Amounts effective January 1, 2012):


Mary Simpson, age 69, transfers $10,000 to the Columban Fathers for a Gift Annuity. At that age, there is a return rate of 5.0%, giving her $500 annually for life. Of that, $389 will be tax-free. In the year in which she makes the transfer, she may claim a Charitable Gift Deduction of $3,595 on her tax return.
Benefits of a Single-Life Gift Annuity for $10,000

Age Return Rate Annual Income Tax-Free Portion Taxable Portion Charitable Deduction
90 9.0% $900.00 $841.50 $58.50 $6,212.70
85 7.8% $780.00 $698.88 $81.12 $5,528.80
80 6.8% $680.00 $575.28 $104.72 $4,822.20
75 5.8% $580.00 $475.02 $104.98 $4,302.00
70 5.1% $510.00 $404.43 $105.57 $3,728.80

Here is an example of a Joint or Two Life Annuity:

Mr. Harris, age 68, wants to take out a Gift Annuity to provide life income for himself and his wife, who is 66. Using principal of $10,000, they will receive an annual income of $440 until the death of the surviving spouse. Approximately $338 of that will be tax-free. In the year they take out the annuity, they may claim a Charitable Gift Deduction of $2,273.

66 5.5 67 5.6 68 5.7 69 5.8

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