PLANNED GIVING

Office of University Advancement
284 Rose Administration
Box 870122
Tuscaloosa, AL 35487
phone: (205) 348-4767
toll-free: (888) 875-4438
fax: (205) 348-8871
mailbox@advancement.ua.edu

Deferred Gift Annuities

As rate charts reveal, gift annuity rates are higher for older individuals. As a result, gift annuities are generally most attractive to persons in their retirement years.

If you are still employed and are planning for your retirement, or you do not need additional income now, you might want to consider an option known as a deferred gift annuity. With a deferred gift annuity, you transfer funds to The University of Alabama today and receive an immediate income tax charitable deduction while payments to you actually begin at a future date you specify.

For example: George and Jane, both age 60, are in their peak earning years and highest tax bracket. They had planned to make a gift to the University through their will. They are also concerned with assuring themselves adequate retirement income.

George and Jane decide to transfer $50,000 to The University of Alabama for a deferred gift annuity agreement. They receive an income tax charitable deduction this year for over $16,000, which helps offset income taxes today. When they reach age 70, annual payments of 8.5% of the amount donated, or $4,250, will begin and continue for as long as either of them lives.

George and Jane plan to create another deferred gift annuity each year until retirement. They are thus able to make substantial and much appreciated gifts to The University of Alabama while they help build future economic security using funds that they had already planned to eventually leave to UA.

Amount transferred to UA — $50,000
Annual payments beginning at age 70 for as long as either George or Jane lives — $4,250
Immediate income tax charitable deduction — $16,115.50

More information about deferred gift annuities.

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