Richard, who retired on April 30, 2015, receives a monthly employee annuity benefit of $1,400 payable for life, beginning May 1, 2015. During his years of employment, Richard contributed $29,400 to the company's plan. Richard's age on May 1 is 66. Using the simplified method, how much of the $11,200 annuity payment received during 2015 may Richard exclude from gross income?

a. $11,200

b. None of these

c. $1,120

d. $1,680

e. $427

Answer rating: 100% (QA)

Contribution to Company Plan 29400 Factor ... View the full answer