For those looking for new ways to support WELS’ mission to spread the gospel of Jesus Christ while still providing for their retirement needs, they may be surprised to learn about a way they can do both: the flexible deferred charitable gift annuity.
- With this creative plan (which is a variation of the simple charitable gift annuity), you can meet current and future income needs. While IRS regulations limit contributions to IRAs, 401(k)s, 403(b)s, and other retirement plans, there are no such limitations with this plan.
- You can create a plan that maximizes your current income tax deduction while retaining the flexibility of receiving payments at the time you choose.
- Lastly, a flexible deferred annuity provides protection should an income need arise due to an uncertain future event (such as placing a relative in an assisted living facility or helping someone with in-home care). Payments can begin if or when the need arises.
A good example
As Bill and Jane prepared for retirement, they wanted to set aside resources to supplement their retirement income, while eventually benefiting a number of WELS ministries, including their home church. With the flexible deferred charitable gift annuity, they fulfilled these objectives.
Over a period of years, Bill and Jane created several flexible deferred charitable gift annuities and can begin receiving the payments in the future.
- They met part of their Christian giving goals, named their favorite ministries to receive the remainder of the annuities, and had large deductions to use against their current income.
- Annually they have the choice to begin receiving the payments.
- When the payments begin, they may decide to use their payments to support the Lord’s work and would receive additional income tax deductions for those gifts.
Charitable gift annuity illustration