Myra Retired Last Year from Whiplash Company After Working There

question 7

Multiple Choice

Myra retired last year from Whiplash Company after working there for 30 years.She elects to take her retirement benefits in the form of a lifetime annuity.Her retirement balance consists of $40,000 of employer contributions,$80,000 of her before-tax contributions,$20,000 of her after-tax contributions,and $60,000 of investment income.The plan will pay her $1,500 per month based on her life expectancy of 22 years.In 2013,Myra receives twelve $1,500 payments.What is her taxable income?

• A)$18,000
• B)$17,091
• C)$14,364
• D)$13,455

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Definitions:

Bladder

A hollow organ in the lower abdomen that stores urine from the kidneys before it is excreted through urination.

Pregnancy

The condition of carrying one or more embryos or fetuses in the womb, typically lasting about 40 weeks in humans from the last menstrual period to childbirth.

Days

Periods of 24 hours, marking a division of time based on the Earth's rotation.

Salpingo-oophorectomy

A surgical procedure to remove one or both of a woman’s ovaries and fallopian tubes.