Sam retired last year and will receive annuity payments for life from his employer's qualified retirement plan
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Question:
Sam retired last year and will receive annuity payments for life from his employer's qualified retirement plan of $30,000 per year starting this year. During his years of employment, Sam contributed $130,000 to the plan on an after-tax basis. Based on IRS tables, his life expectancy is 260 months. This year, Sam will include what amount in income? How much of each $1,000 monthly payment will be included in Sam's gross income for federal income tax purposes?
A) 0
B) $6,000
C) $24,000
D) $30,000
Related Book For
Fundamentals of Physics
ISBN: 978-0471758013
8th Extended edition
Authors: Jearl Walker, Halliday Resnick
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