Question: Tim retired during the current year at age 58. He purchased an annuity from American National Life Company for $40,000. The annuity pays Tim $500

Tim retired during the current year at age 58. He purchased an from American National Life Company for $40,000. The pays Tim $500 per month for life.
a. Compute Tim’s annual exclusion.
b. How much income will Tim report each year after reaching age 84?

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a The exclusion ratio is 2574 percent computed as follows 40000259 x 500 x 12 2574 ... View full answer

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