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Higher Annuity Rates as of January 1, 2023
Posted on June 14, 2023.
Posted on June 14, 2023.
On November 23, 2022, the American Council on Gift Annuities (ACGA) announced that it would be increasing its suggested maximum annuity rates, effective January 1, 2023. The new rates replace the rates that became effective July 1, 2022. The ACGA’s decision to increase its suggested maximum gift annuity rates was triggered by the sharp rise in interest rates that started in March 2022 and has continued since July 2022.
For most gift annuities, the new rates are 0.6% - 0.7% higher than the rates they replace. If you defer the start of payments for a year or more, the increase is even greater.
Ordinarily, you would expect a higher annuity rate to result in a lower charitable deduction. However, the new deductions available in January 2023 will be about the same as they were in July 2022, despite the higher ACGA rates. This is because in the second half of 2022 there has been a spike in the interest rate used to compute gift annuity deductions. The recent spike in this interest rate does have a negative effect; it has reduced the tax-free portion of annuity payments.
The combination of higher annuity rates and substantial deductions makes gift annuities even more attractive to donors seeking to make a gift and receive fixed payments for life.
Throughout the years the Ascension St. John Auxiliary presents the Foundation with a check from donations they have collected from proceeds from gift shop sales and various fundraisers they have put on throughout the year. Recently, Ascension St. John Auxiliary donated $1,739,025 towards a $2 Million dollar pledge made in 2015 benefitting Telemedicine at The Heyman Stroke Center. The Heyman Stroke Center fund goes to help our 24-7 emergency stroke care center by helping to provide experienced medical team members, advanced technology, and acute intervention therapy education needed to help decrease serious brain injury.
For people with kidney failure, three options are available: hemodialysis, which requires patients to use a machine to clean their blood, usually three times a week; peritoneal dialysis, which can be performed by the patient but must be done every day; or kidney transplantation.
St. John’s Hospital (renamed St. John Medical Center in 1976) officially opened on February 22, 1926, but its story began nine years before, in 1917.