Jane, is 55 years old and transfers $50,000 in cash to Carroll College in exchange for a 15 year deferred gift annuity. When Jane reaches age 70, she will receive $6,700 a year for life. Of this amount, about $1,708.50 will be treated as tax-free return of principal for the next 15.9 years (her life expectancy) and $4,991.50 will be taxed as ordinary income.  Thereafter, the entire $6,700.00 annuity will be treated as ordinary income. In addition, Jane realizes a current income tax deduction of about $22,849.50

Contact Marc R. Barbeau, senior advancement officer for gift planning and estate services, Carroll University, 100 N. East Ave., Waukesha, WI 53186, 262.524.7241 or mbarbeau@carrollu.edu.

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