Anne Jones, age 55, is a successful accountant who is in the 35 percent income-tax bracket. While she could use a charitable income-tax deduction, she currently doesn’t need any additional income. However, she would like to supplement her income when she retires in 10 years.
If Anne makes a $20,000 gift to Cleveland Clinic in return for an immediate annuity, she will receive an annuity rate of 4.8 percent, providing an annual payout of $960 for life. If she chooses to postpone payment to begin for 10 years, which would begin for her at age 65, her annual return will be nearly twice that amount.
Deferring payment 10 years will give Anne an annual income of $1,600 for life. Of this amount, $654 would be tax-free. She would also receive a charitable tax deduction of $6,973 - saving $2,440 in income tax.
Contact Us
For a confidential discussion about the benefits of establishing a deferred-payment gift annuity to Cleveland Clinic, please call Institutional Relations and Development at 216.444.1245 and ask to speak with a member of our gift planning team or email giftplanning@ccf.org.
