Sam Retired Last Year and Will Receive Annuity Payments for Life

question 125

Multiple Choice

Sam 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,Sam contributed $130,000 to the plan on an after-tax basis. Based on IRS tables,his life expectancy is 260 months.All of the contributions were on a pre-tax basis.This year,Sam will include what amount in income?

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

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Definitions:

DeCasper

Anthony J. DeCasper, a researcher known for his studies on prenatal and neonatal learning and memory capabilities, such as infants’ preference for their mother’s voice.

Infants

Infants are the youngest group of offspring, typically considered to be from birth up to 1 year old, characterized by rapid development across multiple domains.

The Cat in the Hat

A classic children's book by Dr. Seuss, featuring a mischievous cat who turns a rainy day into an adventurous escapade.

Fetal Activity

Fetal activity refers to the movements and behaviors of the fetus inside the uterus, including kicking, stretching, and somersaulting, which can be indicators of health and development.