Gifts that Provide Guaranteed Income

• Income for Life: An annuity is payable for life to one or two people age 65 or older, so you cannot outlive your annuity payments.
• Eliminate Investment Risk: Your annuity payments — at a fixed amount — will remain constant regardless of market volatility.
• Charitable Deduction: You are entitled to a current charitable income tax deduction for a portion of your gift amount.
• Capital Gains Benefits: If your annuity is funded with appreciated stock, you avoid paying capital gains tax on some of the appreciation, and spread the remaining capital gains over your anticipated life expectancy.
• Tax-advantaged Income: Depending on the assets used to fund the annuity, each annuity payment typically consists of a tax-free return of principal, capital gain, and ordinary income.
• Secure Payments: Your annuity payments are guaranteed by all of Carleton College’s assets (now more than $1.3 billion). The College has earned an Aa2 credit rating from Moody Investor Services.

At the death of your last income beneficiary, remaining annuity assets are transferred to the College to be used for a purpose you may designate.

If you don’t need income right away, you can obtain both a higher payout rate and a larger charitable deduction by establishing a flexible deferred gift annuity. This option allows you to make a gift today but begin receiving your annuity payments at a later date.

• Income for Life: An annuity is payable for life to one or two people age 65 or older, so you cannot outlive your annuity payments.
• You Control When Income Begins: Annuity payments are deferred until you choose to start them (at age 65 or older), with a minimum required deferral period of one year.
• Charitable Deduction: You are entitled to a current charitable income tax deduction for a portion of your gift amount.
• Capital Gains Benefits: If your annuity is funded with appreciated stock, you avoid paying capital gains tax on some of the appreciation, and spread the remaining capital gains over your anticipated life expectancy.
• Tax-advantaged Income: Depending on the assets used to fund the annuity, each annuity payment typically consists of a tax-free return of principal, capital gain, and ordinary income.
• Secure Payments: Your annuity payments are guaranteed by all of Carleton College’s assets (now more than $1.3 billion). The College has earned an Aa2 credit rating from Moody.

At the death of your last income beneficiary, the remaining annuity assets are transferred to the College to be used for a purpose you may designate.

• Larger Deduction: The longer you defer the date of the first potential annuity payment, the larger your annuity payment and charitable deduction will be.
• Build a Ladder: Funding several smaller, identical, flexible deferred gift annuities instead of one large gift annuity enables you to start payments in increments as income is needed.

• Your gifts may count toward your Required Minimum Distribution (RMD) but do not count as income for federal income tax purposes.
• If you’ve already used up your charitable deductions or do not itemize your deductions, you can still make gifts through a QCD.
• Income for Life: The annuity is payable for your life and/or the life of your spouse, so you cannot outlive your annuity payments
• Eliminate Investment Risk: Your annuity payments — at a fixed amount — will remain constant regardless of market volatility.
• Secure Payments: Your annuity payments are guaranteed by all of Carleton College’s assets (now more than $1.3 billion). The College has earned an Aa2 credit rating from Moody.

At the death of your last income beneficiary, the remaining annuity assets are transferred to the College to be used for a purpose you may designate.

• You must be 70 1/2 or older at the time of the QCD.
• The IRS limits the distribution to one year only and up to $55,000 when funding a CGA from your IRA.
• If both you and your spouse are 70 1/2 or older, each can contribute $55,000 from their respective IRAs to fund a joint-life CGA.
• QCDs are tax-neutral for federal tax purposes — you don’t have to report them as income, and they are not eligible for charitable income tax deductions. State laws vary, however.
• All payments from a CGA funded by a QCD will be taxed as ordinary income.
• You must establish an immediate annuity. Flexible annuities do not qualify under the new law.