Hunter Retired Last Year and Will Receive Annuity Payments for Life

question 144

Multiple Choice

Hunter retired last year and will receive annuity payments for life from his employer's qualified retirement plan of $30,000 per year starting this year.During his years of employment,Hunter contributed $130,000 to the plan.Based on IRS tables,his life expectancy is 260 months.All of the contributions were on a pre-tax basis.This year,Hunter will include what amount in income?

• A)$0
• B)$6,000
• C)$24,000
• D)$30,000