Which of the following statements about annuity contracts is true?
A) Annuity contracts provide a fixed income stream from the premiums paid.
B) Payments received from an annuity contract are tax-exempt.
C) Payments received from an annuity contract are fully taxable as ordinary income.
D) Payments received from an annuity contract are fully taxable as capital gain.
Correct Answer:
Verified
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