Planning for Retirement with Annual Deferred Gift Annuity Contributions. Enjoy Immediate Tax Deductions and High Rates of Return Once You're 65. If you are 50 or older, a Deferred Gift Annuity (DGA) can provide you with income and/or capital gains tax advantages and high, fixed income (up to 15.3%, partially tax-free) when you reach 65. The same investment will benefit the charities in which you most believe. For more information, please contact The Office of Planned Giving at 212-371-1011 ext. 3317 The Deferred Gift Annuity (DGA) If you are younger than 65 this annuity can be used as a retirement planning vehicle to supplement existing retirement assets. It is most beneficial to donors who have already made the maximum contributions to their existing retirement plans. You will be paid a fixed amount of income on a regular basis, beginning at age 65. Part of the gift qualifies for an immediate income tax deduction. That will reduce your current taxes. And the full value of the gift is removed from your estate. The younger you are, the larger the tax-deductible portion of the gift. What's more, part of the annuity payment may be received as tax-free income. Example: A donor, age 50, contributes $10,000 cash to a Deferred Gift Annuity. The donor receives a current income tax charitable deduction of $3,192 and a guaranteed annual payment of $1,530, beginning at age 65. Another advantage: the full value of the $10,000 gift is removed from the donor's estate for estate tax purposes. Many donors create Deferred Gift Annuities on an annual basis to build retirement assets. The donor may name a joint and successor beneficiary who will receive the annuity at the end of the donor's lifetime, beginning on the date of the donor's 65th birthday or thereafter. For more information on using annual Deferred Gift Annuity contributions to supplement your retirement plans, call 212-371-1011 ext. 3317. Or e-mail gift.planning@archny.org