A Charitable Gift Annuity...it works both ways!
This "win-win" opportunity begins when you donate $5,000 or more to Dr. Robert F. Thomas Foundation. The amount can be..and often is...larger. It can be cash (certificate of deposit or from a money market fund that may be earning you just 3-4%) or from stock, bonds, or mutual funds.
In exchange, Dr. Robert F. Thomas Foundation agrees to pay you a guaranteed annual amount that remains constant for your life.
Your annuity agreement can be just for yourself as a way of increasing your retirement income; it may include a survivor beneficiary, such as your spouse, a dependant or a friend. Another option is for you to name another person as the sole beneficiary of the gift annuity. This person receives the income, and you get the benefit of the income tax charitable deduction (example, creating a gift annuity for your mother, sister or soon-to-retire housekeeper).
The amount of an annuity payment depends on the age(s) of the beneficiary(ies) at the time you make the gift and create the annuity. Payments can be made quarterly or annually and are made promptly by mail.
Other advantages:
- A gift annuity relieves you of the detail and worry of constant re-investment.
- Our annuity program is in accordance with the State of Tennessee's Department of Commerce and Insurance.
- Part of your contribution for the annuity is considered a gift, and is therefore deductible, if you itemize, for income tax purposes for the year in which the gift is made. A portion of each annuity is tax-free throughout your actuarial life expectancy. The annuity may also save estate taxes and special favorable rules concerning capital gain tax treatment may apply if your annuity is funded with appreciated securities. Exact tax consequences vary according to your tax bracket, financial circumstances and the property donated. You should consult your advisor for how the rules apply to you.
- You have the satisfaction of knowing a substantial portion of your gift annuity will be benefiting Dr. Robert F. Thomas Foundation.
One other option:
- Deferred payment gift annuity allows you to make a gift now but specify the annuity payments start at your retirement or any other date you specify. Tax advantages are similar to a regular gift annuity but the rate of return is somewhat higher as a result of the deferral of payments. Some people find it advantageous to defer income into the future, particularly after retirement, when they may be in a lower tax bracket.
Dr. Robert F. Thomas Foundation is interested in sending you a complimentary brochure, "Questions and Answers about Gift Annuities". Contact Debbie Dowling at (865) 429-6649 or ddowling@covhlth.com for this beneficial educational information.
Gift Annnuity Payment Rates
| Selected Rates for One Person |
Selected Rates for Two Persons of the Same Age |
| Age 65
70
75
80
85
90+ |
Rates 6.0%
6.5%
7.1%
8.0%
9.5%
11.3% |
Age 65/65
70/70
75/75
80/80
85/85
90/90 |
Rates 5.6%
5.9%
6.3%
6.9%
7.9%
9.3% |
|
