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The only negative tax aspect of this is that contributions have limits as to their deductibility while the "income" donated will be fully taxable. The limit on monetary contributions is 50% of your Adjusted Gross Income (the botXXXXX XXXXXne on page 1 of your federal return). If this contribution is within the 50% limit and you are able to itemize deductions you can feel free to proceed with this. Also, you should take into account that contribution deductions which cannot be used in one year can be carried forward to the next year and any unused amount there can be carried to the following etc until used up.
The only income will be yearly payments startig in 2012. The amount I would be setting up is about $50,000 and payout would be once yearly. The total of $50,000 is roughly equivalent to my yearly income, but the amount received each year would be less tha $3,ooo. Normally, this type of annuity has tax benefits due to the charitable contribution thereby reducing the total taxes each year.
Would this be true i my case?
By the way, my inten is to have the funds tansferred direct from the TSP to the charitable orgaization.