Sam Retired Last Year and Will Receive Annuity Payments for Life

question 1814

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. This year, Sam will include what amount in income?

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

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Definitions:

Apical Impulse

The pulse felt at the apex of the heart, typically located in the fifth left intercostal space at the midclavicular line.

Midclavicular Line

An imaginary line running vertically down the surface of the body passing through the midpoint of the clavicle, often used as a reference in medical examinations.

Heart Sound

The noises (such as lub-dub) generated by the beating heart and the resultant flow of blood through it.

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen, playing a major role in breathing.