Question: This year, Devin and Lana withdraw $25,000 from their variable annuity to pay some unexpected bills. Assuming the annuity was issued in 2010, and the
This year, Devin and Lana withdraw $25,000 from their variable annuity to pay some unexpected bills. Assuming the annuity was issued in 2010, and the $125,000 balance in the annuity includes $50,000 in earnings, what is the amount of the $25,000 withdrawal that is subject to income tax?
Step by Step Solution
There are 3 Steps involved in it
When you withdraw funds from a variable annuity the taxation is determined by the ordering rules The ... View full answer
Get step-by-step solutions from verified subject matter experts
