6.3.4 Basic Quiz -- Flexible Deferred Gift Annuity

The flexible deferred gift annuity has been approved by the IRS in several PLRs.

True False

Flexible annuities may be used only for retirement planning.

True False

The target date is the date that the first payment must be made.

True False

The target date is used to determine an annuitant's charitable deduction.

True False

Jeremy created a flexible annuity on April 1, 2005. Jeremy selected April 1, 2010 as his target date. In 2007, Jeremy decides that he needs to supplement his income and elects to begin receiving payments on April 1, 2007. Jeremy must reimburse the IRS for the reduction in the charitable deduction resulting from the early starting date.

True False

Ryan created a flexible annuity on January 1, 2000 with a target date of January 1, 2002. However, Ryan decided to delay the payments until the current year. Ryan will receive an additional charitable deduction for the longer deferral period.

True False

A flexible annuity must have a deferral period of at least one year.

True False

A flexible annuity starting date is the same as the first payment date.

True False

If a donor does not need the flexible annuity payments, the donor may surrender the annuity to a charitable organization.

True False

Brian is receiving payments from his flexible deferred annuity. Brian selected quarterly payments and received his first payment April 1, 2005. The starting date of the annuity was Feb. 29, 2005.