These rates are effective
February 1, 2009.
Especially given the current economic environment, charities
may want to encourage donors to accept a lesser rate.
Single Life
Two-Life
Interest Factors For Deferred
Annuities (Except New York and New
Jersey)
Interest Factors For Deferred
Annuities in New York and New Jersey
WARNING:These annuity rates, for
both immediate and deferred annuities
and for both single life and two lives,
should not be used if the gift portion,
based on IRS tables and the applicable
discount rate, is not more than 10%
of the amount paid for the annuity.
Single Life
| |
|
Age
|
Rate
|
|
Age
|
Rate
|
|
Age
|
Rate
|
|
1-5
|
2.6
|
36
|
3.5
|
66
|
5.4
|
|
6-7
|
2.7
|
37
|
3.5
|
67
|
5.4
|
|
8
|
2.7
|
38
|
3.6
|
68
|
5.5
|
|
9
|
2.7
|
39
|
3.6
|
69
|
5.6
|
|
10
|
2.7
|
40
|
3.7
|
70
|
5.7
|
|
11
|
2.7
|
41
|
3.7
|
71
|
5.8
|
|
12
|
2.7
|
42
|
3.8
|
72
|
5.9
|
|
13
|
2.8
|
43
|
3.9
|
73
|
6.0
|
|
14
|
2.8
|
44
|
4.0
|
74
|
6.1
|
|
15
|
2.8
|
45
|
4.0
|
75
|
6.3
|
|
16
|
2.8
|
46
|
4.1
|
76
|
6.4
|
|
17
|
2.9
|
47
|
4.2
|
77
|
6.6
|
|
18
|
2.9
|
48
|
4.3
|
78
|
6.7
|
|
19
|
2.9
|
49
|
4.4
|
79
|
6.9
|
|
20
|
2.9
|
50
|
4.4
|
80
|
7.1
|
|
21
|
3.0
|
51
|
4.5
|
81
|
7.3
|
|
22
|
3.0
|
52
|
4.6
|
82
|
7.5
|
|
23
|
3.0
|
53
|
4.7
|
83
|
7.7
|
|
24
|
3.0
|
54
|
4.8
|
84
|
7.9
|
|
25
|
3.1
|
55
|
4.8
|
85
|
8.1
|
|
26
|
3.1
|
56
|
4.9
|
86
|
8.3
|
|
27
|
3.1
|
57
|
4.9
|
87
|
8.6
|
|
28
|
3.2
|
58
|
4.9
|
88
|
8.9
|
|
29
|
3.2
|
59
|
5.0
|
89
|
9.2
|
|
30
|
3.2
|
60
|
5.0
|
90+
|
9.5
|
|
31
|
3.3
|
61
|
5.1
|
|
|
|
32
|
3.3
|
62
|
5.1
|
|
|
|
33
|
3.4
|
63
|
5.2
|
|
|
|
34
|
3.4
|
64
|
5.2
|
|
|
|
35
|
3.4
|
65
|
5.3
|
|
|
Notes:-
- The rates are for ages at the
nearest birthday.
- For immediate gift annuities, these
rates will result in a charitable
deduction of more than 10% if the
CMFR is 2.4% or higher, whatever
the payment frequency. If the CMFR
is less than 2.4%, the deduction
will be less than 10% when annuitants
are below certain ages.
- For deferred gift annuities with
longer deferral periods, the rates
may not pass the 10% test when the
CMFR is low.
- The new rates will qualify for all immediate gift annuities at
all ages for a CMFR of 2.4% or above. In the case of deferred gift
annuities, there may be a few instances in which rates based on the
ACGA’s suggested schedule and methodology do not qualify when the
CMFR is quite low. In those instances, the deferred rates would have
to be reduced to qualify.
Two Lives–
Joint And Survivor
|
Younger Age |
Older Age |
Rate |
Younger Age |
Older Age |
Rate |
Younger Age |
Older Age |
Rate |
|
1 |
1+ |
2.5 |
49 |
54-57 |
3.9 |
77 |
81-82 |
6 |
|
2 |
2+ |
2.5 |
49 |
58-61 |
4 |
77 |
83-84 |
6.1 |
|
3 |
3+ |
2.5 |
49 |
62-66 |
4.1 |
77 |
85-87 |
6.2 |
|
4 |
4+ |
2.5 |
49 |
67+ |
4.2 |
77 |
88-91 |
6.3 |
|
5 |
5+ |
2.5 |
50 |
50-52 |
3.8 |
77 |
92+ |
6.4 |
|
6 |
6-14 |
2.5 |
50 |
53-55 |
3.9 |
78 |
78-79 |
5.9 |
|
6 |
15+ |
2.6 |
50 |
56-59 |
4 |
78 |
80-81 |
6 |
|
7 |
7-13 |
2.5 |
50 |
60-63 |
4.1 |
78 |
82 |
6.1 |
|
7 |
14+ |
2.6 |
50 |
64+ |
4.2 |
78 |
83-85 |
6.2 |
|
8 |
8-11 |
2.5 |
51 |
51 |
3.8 |
78 |
86-87 |
6.3 |
|
8 |
12+ |
2.6 |
51 |
52-54 |
3.9 |
78 |
88-90 |
6.4 |
|
9 |
9-10 |
2.5 |
51 |
55-57 |
4 |
78 |
91+ |
6.5 |
|
9 |
11+ |
2.6 |
51 |
58-60 |
4.1 |
79 |
79 |
6 |
|
10 |
10+ |
2.6 |
51 |
61-64 |
4.2 |
79 |
80-81 |
6.1 |
|
11 |
11+ |
2.6 |
51 |
65+ |
4.3 |
79 |
82-83 |
6.2 |
|
12 |
12+ |
2.6 |
52 |
52 |
3.9 |
79 |
84-85 |
6.3 |
|
13 |
13-21 |
2.6 |
52 |
53-55 |
4 |
79 |
86-87 |
6.4 |
|
13 |
22+ |
2.7 |
52 |
56-58 |
4.1 |
79 |
88-89 |
6.5 |
|
14 |
14-19 |
2.6 |
52 |
59-62 |
4.2 |
79 |
90-92 |
6.6 |
|
14 |
20+ |
2.7 |
52 |
63-66 |
4.3 |
79 |
93+ |
6.7 |
|
15 |
15-18 |
2.6 |
52 |
67+ |
4.4 |
80 |
80 |
6.1 |
|
15 |
19+ |
2.7 |
53 |
53-54 |
4 |
80 |
81 |
6.2 |
|
16 |
16-17 |
2.6 |
53 |
55-57 |
4.1 |
80 |
82-83 |
6.3 |
|
16 |
18+ |
2.7 |
53 |
58-60 |
4.2 |
80 |
84 |
6.4 |
|
17 |
17-30 |
2.7 |
53 |
61-63 |
4.3 |
80 |
85-86 |
6.5 |
|
17 |
31+ |
2.8 |
53 |
64-67 |
4.4 |
80 |
87-88 |
6.6 |
|
18 |
18-28 |
2.7 |
53 |
68+ |
4.5 |
80 |
89-90 |
6.7 |
|
18 |
29+ |
2.8 |
54 |
54-56 |
4.1 |
80 |
91-93 |
6.8 |
|
19 |
19-26 |
2.7 |
54 |
57-58 |
4.2 |
80 |
94+ |
6.9 |
|
19 |
27+ |
2.8 |
54 |
59-61 |
4.3 |
81 |
81-82 |
6.3 |
|
20 |
20-24 |
2.7 |
54 |
62-64 |
4.4 |
81 |
83 |
6.4 |
|
20 |
25+ |
2.8 |
54 |
65-68 |
4.5 |
81 |
84 |
6.5 |
|
21 |
21-23 |
2.7 |
54 |
69+ |
4.6 |
81 |
85-86 |
6.6 |
|
21 |
24-36 |
2.8 |
55 |
55 |
4.1 |
81 |
87-88 |
6.7 |
|
21 |
37+ |
2.9 |
55 |
56-57 |
4.2 |
81 |
89 |
6.8 |
|
22 |
22-22 |
2.7 |
55 |
58-59 |
4.3 |
81 |
90-92 |
6.9 |
|
22 |
23-34 |
2.8 |
55 |
60-62 |
4.4 |
81 |
93-94 |
7 |
|
22 |
35+ |
2.9 |
55 |
63-65 |
4.5 |
81 |
95+ |
7.1 |
|
23 |
23-32 |
2.8 |
55 |
66+ |
4.6 |
82 |
82 |
6.4 |
|
23 |
33+ |
2.9 |
56 |
56 |
4.2 |
82 |
83 |
6.5 |
|
24 |
24-30 |
2.8 |
56 |
57-58 |
4.3 |
82 |
84 |
6.6 |
|
24 |
31+ |
2.9 |
56 |
59-60 |
4.4 |
82 |
85-86 |
6.7 |
|
25 |
25-29 |
2.8 |
56 |
61-63 |
4.5 |
82 |
87 |
6.8 |
|
25 |
30-40 |
2.9 |
56 |
64-66 |
4.6 |
82 |
88-89 |
6.9 |
|
25 |
41+ |
3 |
56 |
67+ |
4.7 |
82 |
90 |
7 |
|
26 |
26-27 |
2.8 |
57 |
57 |
4.3 |
82 |
91-92 |
7.1 |
|
26 |
28-38 |
2.9 |
57 |
58-59 |
4.4 |
82 |
93+ |
7.2 |
|
26 |
39+ |
3 |
57 |
60-61 |
4.5 |
83 |
83 |
6.6 |
|
27 |
27-36 |
2.9 |
57 |
62-64 |
4.6 |
83 |
84 |
6.7 |
|
27 |
37+ |
3 |
57 |
65+ |
4.7 |
83 |
85-86 |
6.8 |
|
28 |
28-34 |
2.9 |
58 |
58 |
4.4 |
83 |
87 |
6.9 |
|
28 |
35-45 |
3 |
58 |
59-60 |
4.5 |
83 |
88 |
7 |
|
28 |
46+ |
3.1 |
58 |
61-62 |
4.6 |
83 |
89-90 |
7.1 |
|
29 |
29-32 |
2.9 |
58 |
63+ |
4.7 |
83 |
91 |
7.2 |
|
29 |
33-42 |
3 |
59 |
59 |
4.5 |
83 |
92-93 |
7.3 |
|
29 |
43+ |
3.1 |
59 |
60-61 |
4.6 |
83 |
94+ |
7.4 |
|
30 |
30-31 |
2.9 |
59 |
62-63 |
4.7 |
84 |
84 |
6.8 |
|
30 |
32-40 |
3 |
59 |
64+ |
4.8 |
84 |
85 |
6.9 |
|
30 |
41+ |
3.1 |
60 |
60 |
4.6 |
84 |
86 |
7 |
|
31 |
31-38 |
3 |
60 |
61-62 |
4.7 |
84 |
87-88 |
7.1 |
|
31 |
39+ |
3.1 |
60 |
63+ |
4.8 |
84 |
89 |
7.2 |
|
32 |
32-36 |
3 |
61 |
61-65 |
4.8 |
84 |
90 |
7.3 |
|
32 |
37+ |
3.1 |
61 |
66+ |
4.9 |
84 |
91-92 |
7.4 |
|
33 |
33-35 |
3 |
62 |
62-63 |
4.8 |
84 |
93 |
7.5 |
|
33 |
36-43 |
3.1 |
62 |
64+ |
4.9 |
84 |
94+ |
7.6 |
|
33 |
44+ |
3.2 |
63 |
63-68 |
4.9 |
85 |
85 |
7 |
|
34 |
34 |
3 |
63 |
69+ |
5 |
85 |
86 |
7.1 |
|
34 |
35-39 |
3.1 |
64 |
64-66 |
4.9 |
85 |
87 |
7.2 |
|
34 |
40+ |
3.2 |
64 |
67+ |
5 |
85 |
88 |
7.3 |
|
35 |
35-39 |
3.1 |
65 |
65 |
4.9 |
85 |
89 |
7.4 |
|
35 |
40+ |
3.2 |
65 |
66-70 |
5 |
85 |
90-91 |
7.5 |
|
36 |
36-38 |
3.1 |
65 |
71+ |
5.1 |
85 |
92 |
7.6 |
|
36 |
39-45 |
3.2 |
66 |
66-69 |
5 |
85 |
93 |
7.7 |
|
36 |
46+ |
3.3 |
66 |
70-74 |
5.1 |
85 |
94+ |
7.8 |
|
37 |
37 |
3.1 |
66 |
75+ |
5.2 |
86 |
86 |
7.2 |
|
37 |
38-43 |
3.2 |
67 |
67 |
5 |
86 |
87 |
7.3 |
|
37 |
44+ |
3.3 |
67 |
68-72 |
5.1 |
86 |
88 |
7.4 |
|
38 |
38-41 |
3.2 |
67 |
73+ |
5.2 |
86 |
89 |
7.5 |
|
38 |
42-48 |
3.3 |
68 |
68-70 |
5.1 |
86 |
90 |
7.6 |
|
38 |
49+ |
3.4 |
68 |
71-74 |
5.2 |
86 |
91 |
7.7 |
|
39 |
39-40 |
3.2 |
68 |
75+ |
5.3 |
86 |
92 |
7.8 |
|
39 |
41-46 |
3.3 |
69 |
69 |
5.1 |
86 |
93 |
7.9 |
|
39 |
47+ |
3.4 |
69 |
70-73 |
5.2 |
86 |
94+ |
8 |
|
40 |
40-44 |
3.3 |
69 |
74-77 |
5.3 |
87 |
87 |
7.4 |
|
40 |
45-50 |
3.4 |
69 |
78+ |
5.4 |
87 |
88 |
7.6 |
|
40 |
51+ |
3.5 |
70 |
70-71 |
5.2 |
87 |
89 |
7.7 |
|
41 |
41-43 |
3.3 |
70 |
72-75 |
5.3 |
87 |
90 |
7.8 |
|
41 |
44-48 |
3.4 |
70 |
76-79 |
5.4 |
87 |
91 |
7.9 |
|
41 |
49+ |
3.5 |
70 |
80+ |
5.5 |
87 |
92 |
8 |
|
42 |
42-42 |
3.3 |
71 |
71-73 |
5.3 |
87 |
93 |
8.1 |
|
42 |
43-47 |
3.4 |
71 |
74-77 |
5.4 |
87 |
94 |
8.2 |
|
42 |
48-52 |
3.5 |
71 |
78-81 |
5.5 |
87 |
95+ |
8.3 |
|
42 |
53+ |
3.6 |
71 |
82+ |
5.6 |
88 |
88 |
7.7 |
|
43 |
43-45 |
3.4 |
72 |
72 |
5.3 |
88 |
89 |
7.8 |
|
43 |
46-50 |
3.5 |
72 |
73-75 |
5.4 |
88 |
90 |
7.9 |
|
43 |
51-56 |
3.6 |
72 |
76-78 |
5.5 |
88 |
91 |
8.1 |
|
43 |
57+ |
3.7 |
72 |
79-82 |
5.6 |
88 |
92 |
8.2 |
|
44 |
44 |
3.4 |
72 |
83+ |
5.7 |
88 |
93 |
8.3 |
|
44 |
45-48 |
3.5 |
73 |
73-74 |
5.4 |
88 |
94 |
8.4 |
|
44 |
49-53 |
3.6 |
73 |
75-76 |
5.5 |
88 |
95+ |
8.5 |
|
44 |
54-59 |
3.7 |
73 |
77-79 |
5.6 |
89 |
89 |
8 |
|
44 |
60+ |
3.8 |
73 |
80-83 |
5.7 |
89 |
90 |
8.1 |
|
45 |
45-47 |
3.5 |
73 |
84+ |
5.8 |
89 |
91 |
8.2 |
|
45 |
48-51 |
3.6 |
74 |
74-75 |
5.5 |
89 |
92 |
8.4 |
|
45 |
52-56 |
3.7 |
74 |
76-78 |
5.6 |
89 |
93 |
8.5 |
|
45 |
57+ |
3.8 |
74 |
79-80 |
5.7 |
89 |
94 |
8.6 |
|
46 |
46 |
3.5 |
74 |
81-84 |
5.8 |
89 |
95+ |
8.7 |
|
46 |
47-50 |
3.6 |
74 |
85+ |
5.9 |
90 |
90 |
8.3 |
|
46 |
51-54 |
3.7 |
75 |
75-76 |
5.6 |
90 |
91 |
8.4 |
|
46 |
55-59 |
3.8 |
75 |
77-79 |
5.7 |
90 |
92 |
8.6 |
|
46 |
60+ |
3.9 |
75 |
80-81 |
5.8 |
90 |
93 |
8.7 |
|
47 |
47-49 |
3.6 |
75 |
82-84 |
5.9 |
90 |
94 |
8.8 |
|
47 |
50-52 |
3.7 |
75 |
85-88 |
6 |
90 |
95+ |
9 |
|
47 |
53-57 |
3.8 |
75 |
89+ |
6.1 |
91 |
91 |
8.6 |
|
47 |
58-62 |
3.9 |
76 |
76-77 |
5.7 |
91 |
92 |
8.7 |
|
47 |
63+ |
4 |
76 |
78-79 |
5.8 |
91 |
93 |
8.9 |
|
48 |
48-51 |
3.7 |
76 |
80-82 |
5.9 |
91 |
94 |
9.1 |
|
48 |
52-55 |
3.8 |
76 |
83-84 |
6 |
91 |
95+ |
9.2 |
|
48 |
56-59 |
3.9 |
76 |
85-87 |
6.1 |
92 |
92 |
8.9 |
|
48 |
60-64 |
4 |
76 |
88+ |
6.2 |
92 |
93 |
9.1 |
|
48 |
65+ |
4.1 |
77 |
77-78 |
5.8 |
92 |
94+ |
9.3 |
|
49 |
49-50 |
3.7 |
77 |
79-80 |
5.9 |
93+ |
93+ |
9.3 |
|
49 |
51-53 |
3.8 |
|
|
Interest Factors For Deferred
Annuities (Except New York and New
Jersey)
- Determine the annuity starting
date, which is:
One year before the first payment,
if payments are made annually.
Six months before the first payment,
if payments are made semi-annually.
Three months before the first payment,
if payments are made quarterly.
One month before the first payment,
if payments are made monthly.
- Determine the number of whole
and fractional years from the date
of the contribution to the annuity
starting date (the deferral period).
Express the fractional year as a
decimal of four numbers.
- For a deferral period of any length,
use the following formula to determine
the compound interest factor:
F = 1.0475d, where
F is the compound interest factor
and
d is the deferral period
Example: If the period between
the contribution date and the annuity
starting date is 14.5760 years,
the compound interest factor would
be
1.047514.5760 = 1.9668.
- Multiply the compound interest
factor (F) by the immediate gift
annuity rate for the nearest age
or ages of a person or persons at
the annuity starting date.
Example: If the sole annuitant
will be nearest age 65 on the annuity
starting date and the compound
interest factor is 1.9968, the
deferred gift annuity rate would
be
1.9968 x 5.7% = 11.2%
(rounded
to the nearest tenth of a percent).
Comments: The annuity starting date for purposes
of calculating the deferred gift annuity
rate will be the same as the annuity
starting date for calculating the charitable
deduction, if payments are at the end
of the period (which is usually the
case). This was not true with the pre-July
1, 2001 methodology.
An annuitant is credited with compound
interest for the entire period from
the date of contribution to the annuity
starting date. Under the pre-July,
2001 methodology, compound interest
was credited only for the number of
whole years between the two dates.
Charities issuing deferred gift annuities
in New York and New Jersey may need
to use a slightly lower compounding
rate depending on the deferral period.
Information regarding this subject
will be posted on the ACGA website
(www.acga-web.org) and on the new gift
annuity rate sheets.
Deferred
Payment Gift Annuity Factors for New York and New Jersey *
Through August of 2009,
the following compound interest factors during the deferral period
noted will satisfy the requirements of New York and New Jersey:
For deferral periods of zero to no more than
five years:
Single-life and two-life annuities, whatever
the gender of the annuitants, a compound interest factor of 4.25%.
For deferral periods of more than five years to
no more than 10 years:
Single-life and two-life annuities, whatever
the gender of the annuitants, a compound interest factor of 4.25%.
For deferral periods of more than 10 years to
no more than 20 years:
Single-life and two-life annuities, whatever
the gender of the annuitants, a compound interest factor of 4.25%.
For deferral periods of more than 20 years:
Single-life and two-life annuities, whatever
the gender of the annuitants, a compound interest factor of 4.25%.
The deferred gift annuity rates with the lower
compound interest factor should be acceptable for all ages in New
York and New Jersey. Any changes in this regard will be posted on
the ACGA website and noted on printed rate schedules.
* New York and New Jersey are the two states
known at this time that may require different interest factors for
deferred gift annuities with longer deferral periods.
Annuity
Starting Date
One year before the first payment, if payments are made
annually.
Six months before the first payment, if payments are made
semi-annually.
Three months before the first payment, if payments are made
quarterly.
One month before the first payment, if payments are made
monthly.
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