During 2015, Michael's mother Carol passes away. At that time, they discover that she had a nonqualified variable annuity consisting of an initial investment of $50,000 made in 1995. The current value of the annuity is $126,000, and Michael is the sole primary beneficiary. If Michael chooses to take the entire $126,000 in a lump-sum distribution to help refinance the mortgage, what would be the tax consequence?

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Heres what Michael needs to consider for the tax consequences of taking a lumpsum distribution from ... View the full answer