Deferred Gift Annuity

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How It Works

You transfer cash or securities to witf. Our suggested minimum gift requirement is $10,000.  Beginning on a specified date in the future, witf begins to pay you, or up to two annuitants that you name, fixed annuity payments for life.  Beneficiaries are recommended to be at least 65 years old to begin receiving payments and must be at least 40 years old to fund the gift.  The remaining balance passes to witf when the contract ends

Benefits

  • Your deferral of payments permits a higher annuity rate and generates a larger charitable deduction for you.
  • You can plan for your annuity payments to begin when you need them, for example, at retirement.
  • The longer you elect to defer payments, the higher your payment will be.

Deferred Gift Annuity: FAQs

How can this gift enhance my retirement savings?
A Deferred Gift Annuity provides lifetime annuity payments commencing at a future date. Because of this deferral, payments from deferred gift annuities are higher than from annuities whose payments begin immediately, and donors usually receive a larger charitable deduction than they would for an immediate-payment annuity. Many donors use deferred gift annuities as a source of supplemental retirement income. They often create their annuity with funds they had already set aside for retirement savings, and set their anticipated retirement as the date to begin receiving payments. An attractive option is to establish a series of deferred gift annuities over several years, all scheduled to begin payments upon the donor's retirement.

May I choose the start date for my annuity payments?
Yes, you may. Choose whatever date makes sense to you. And remember this: the longer you wait, the larger your payments will be.

Is it better to use gifts of cash or stock for my deferred gift annuity?
One is not necessarily better than the other. Both have distinct advantages. A gift of cash will produce a larger tax-free portion of the annuity. A gift of stock will reduce the donor’s capital gain tax. Both assets produce an equal annuity rate and charitable income tax deduction.

Contact witf about Planned Giving

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