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:

Positive Punishment

A behavioral strategy that involves the addition of an unfavorable outcome in response to an undesired behavior.

Discipline

The practice of training people to obey rules or a code of behavior, using punishment to correct disobedience.

Added

Refers to something that has been included or joined to another thing, increasing the total number, quantity, or extent.

Observational Learning

The process of learning behaviors by watching and imitating others.