Question: Six years ago, Gene deposited $ 2 5 0 , 0 0 0 into a nonqualified annuity and over time the contract has grown to

Six years ago, Gene deposited $250,000 into a nonqualified annuity and over time the contract has grown to $315,000. This year, Gene, now age 55, would like to withdraw $50,000 to help his daughter with her student loan debt.
Which one of the following describes the tax implications of this distribution?

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