Lucy, a 57-year-old widow, lost her husband in 2021. He was an active participant in the Federal Employees' Retirement System (FERS), and his FERS contributions totaled $27,000 at the time of his death. Lucy is entitled to receive a survivor annuity. She is also entitled to receive a special FERS death benefit of $17,000, which she elected to receive in a lump sum in 2021. How much of the lump-sum death payment is taxable?

$0

$9,000

$10,000

$17,000

Answer rating: 100% (QA)

Solution Option d 17 000 is correct Explanation As stated in the questi View the full answer