Barney retired from the Marlin Corporation where he worked for 25 years Barney elects to receive his retirement benefits as an annuity over his remaining life, resulting in annual payments of $15,000 His plan balance consists of $70,000 employer contributions, $20,000 after tax employee contributio...

13750 All of the contributions to Barneys retirement plan except for ...

Barney retired from the Marlin Corporation where he worked for 25 years. Barney elects to receive his

Question:

Barney retired from the Marlin where he worked for 25 years. Barney elects to receive his retirement benefits as an over his remaining life, resulting in annual payments of $15,000. His plan balance consists of $70,000 employer contributions, $20,000 after-tax employee contributions, $10,000 pretax employee contributions, and $22,000 investment earnings. Based on Barney's life expectancy, his is $240,000. Of each $15,000 payment, how much must Barney report as gross income?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...