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:

Stage Theory

A psychological theory that proposes development occurs in distinct and successive stages, each with its own challenges and characteristics.

Discontinuity

A concept that denotes abrupt changes or breaks in development, patterns, or processes, contrasting with continuous, gradual transformations.

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development where, typically during childhood, kids gain a sense of competence through completing tasks or they feel inferior if they fail.

Psychosocial Stages

A theory by Erik Erikson outlining eight stages of psychological development, from infancy to late adulthood, each characterized by a specific conflict that contributes to a major aspect of personality.