Sam Retired Last Year and Will Receive Annuity Payments for Life

question 49

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)$6,000
• C)$24,000
• D)$30,000

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Definitions:

Mutualism

Symbiotic relationship in which both species benefit in terms of growth and reproduction.

Biosphere

Zone of air, land, and water at the surface of the Earth, in which living organisms are found.

Lithosphere

The rigid outer layer of the Earth, consisting of the crust and the upper mantle, involved in plate tectonics and continental drift.

Biome

A large community of plants and animals that occupies a distinct region defined by its climate, flora, and fauna.