Patrick Is Entitled to Receive Monthly Payments of $1,500 Over

question 85

Multiple Choice

Patrick is entitled to receive monthly payments of $1,500 over his life from his employer's qualified pension plan or he can take $1,300 monthly over his life and the life of his wife. The payments begin January 1, 2015. He contributed $85,250 to the plan prior to his retirement. Patrick is 64 and his wife is 62. Using the simplified method, how much of the payments will be included in Patrick's taxable income for 2015 if he chooses to take $1,300 monthly over his life and the life of his wife?

• A) $1,300.
• B) $3,300.
• C) $12,300.
• D)$15,600.

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Definitions:

Nigrostriatal Dopamine System

A pathway in the brain involved in the control of movement; degeneration of this system is associated with Parkinson's disease.

Acetylcholine System

A neurotransmitter system that plays a critical role in muscle activation, memory, and attention.

Norepinephrine System

A component of the brain's neurotransmitter systems that influences attention, emotion, and bodily responses to stress and physical activity.

Tourette Syndrome

A neurological disorder characterized by repetitive, involuntary movements and vocalizations called tics, often emerging in childhood.