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:

Myelin

A fatty substance that encases and protects nerve fibers, facilitating the rapid transmission of electrical signals along the nervous system.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Fatty Substance

Any of various natural oily or greasy substances occurring in plants and animals, used by the body for energy, heat, and as a component of cell membranes.

Cerebrum

The largest part of the brain, responsible for voluntary motor functions, sensory information processing, language, cognitive abilities, and emotional regulation.