Mary buys an annuity from a life insurance company. She is 45 years old. She pays $75,000
Question:
Mary buys an annuity from a life insurance company. She is 45 years old. She pays $75,000 for the annuity. The annuity will begin to pay her $8,000 annually beginning in 5 years for the rest of her life. Under a table published by the IRS, Mary's life expectancy is 35 years (80 years old). Because Mary is a habitual smoker her doctor told her that her life expectancy is closer to 15 years (60 years old). In the first year that Mary receives a payment of $8,000, under the annuity plan how much will she have to include in income? When Mary is 83 years old, she also receives $8,000. How much is included in her income?
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver