The CMC Flexible Deferred Gift Annuity
A Flexible Deferred Gift Annuity is a simple contractual agreement between you and CMC. In exchange for your irrevocable gift of cash or securities, CMC agrees to make fixed payments for life to one or two people, with payments to begin on a future date. The payments are a legal obligation of the College and are guaranteed by the general resources of CMC. The older the designated annuitants are at the point when annuity payments begin, the greater the fixed income CMC can agree to pay.
How You Benefit
- You Control When Payments Start You choose when payments start within a pre-determined range of possible starting date that you select.
- Eliminate Investment Risk Your gift grows tax-deferred inside the annuity until payments start, at a guaranteed rate of 5.25%.
- Income You Can't Outlive With payments for life, you cannot outlive your annuity.
- Charitable Deduction Your gift qualifies for a charitable income tax deduction for a portion of your gift amount.
- Capital Gain Benefits You may fund a gift annuity with appreciated securities without having to sell the stock first and pay the tax.
- Attractive Rates CMC annuity rates are among the highest in the country.
- Tax-Advantaged Payments A portion of each payment will be tax-free, capital gain (if funded with appreciated securities), and ordinary income.
- Secure Payments Your annuity payments are guaranteed by all of the assets of Claremont McKenna College; now over $600 million. The College has earned an Aa2 (double A-2) credit rating from Moody Investor Services.
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The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income tax include federal taxes only. Individual state taxes and/or state law may impact your results.
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