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

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Definitions:

Germ Layer

One of the primary layers of cells (ectoderm, mesoderm, or endoderm) in the early embryo that will differentiate into various tissues and organs.

Pituitary Gland

a small, pea-sized gland located at the base of the brain, responsible for controlling important functions in the body through the release of hormones.

Ectoderm

The external layer of cells or tissues in an embryo during its initial stages of growth, which develops into the skin's outer layer, the brain, and the nervous system.

Environmental Factors

External elements including temperature, water, sunlight, and soil that affect living organisms and the functioning of ecosystems.