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1. A donor can fund several gift annuities over a period of time and have them all pay out at the same time.

True False

2. It is permissible to have additional contributions with a gift annuity.

True False

3. If a donor needs additional income from an annuity for only a period of time, a term of years deferred gift annuity works well.

True False

4. If a donor funds a term of years annuity for him or herself with appreciated property, the capital gain tax is due in the tax year that the gift annuity is funded.

True False

5. It is allowable to do a deferred gift annuity for two lives and convert it to a term of years.

True False

6. There may be a 10% penalty if the annuitant converts a lifetime gift annuity into a term of years gift annuity.

True False

7. With a deferred gift annuity, even though an annuitant does not receive income until a later time, the donor receives the deduction when the gift annuity is funded.

True False

8. When illustrating a multiple-contribution deferred gift annuity in Crescendo, the future tax deduction and payouts are only estimates.

True False

9. The longer the deferral, the lower the payouts.

True False

10. The election for a term of years can be made any time before the first annuity payment.

True False

Basic Quiz - 3.4.4 Retirement Annuity