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1. A flexible deferred gift annuity is approved by the Internal Revenue Code.

True False

2. A flexible payout is permissible with a current gift annuity.

True False

3. The flexible deferred gift annuity will always have the same deduction no matter if the annuitant decides to start the payments before or after the target deferral date.

True False

4. With a flexible deferred gift annuity, the payout rate is adjusted to conform to the deduction no matter when the annuity starts.

True False

5. The longer the deferral period with a deferred flexible gift annuity, the higher the deduction.

True False

6. With a flexible deferred gift annuity, the tax deduction is taken when the annuitant starts the income stream.

True False

7. The annuitant or annuitants can start payments, then stop and restart payments with a flexible deferred gift annuity.

True False

8. It is permissible for the annuitant to give his or her right in the income stream to charity and receive another income tax deduction.

True False

9. The flexible deferred gift annuity allows annuitants greater flexibility in choosing when they want an income stream to start.

True False

10. If the donor passes away before any payments are made from the flexible deferred gift annuity, the charity must make at least one payment.

True False

Basic Quiz - 3.4.2 Flexible Annuity