Twenty years ago Pricilla purchased an annuity costing $19,500 that will pay her $250 per month from age 65 until she dies. Polly is an employee of Evergreen Corporation. During her employment with Evergreen, Polly has paid a total of $20,000 into Evergreen's qualified employee pension plan. Under the plan, Polly is to receive $250 per year from age 65 until she dies. Pricilla and Polly turn 65 during the current year and retire. Each of them has a life expectancy of 12 years from the date of retirement. Discuss the differences in the treatment of the $250 payments each of them receives.

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The Answer of Twenty years ago Pricilla purchased an annuity costing $19,500 that will pay her $250 per month from age 65 until she dies. Polly is an employee of Evergreen Corporation. During her employment with Evergreen, Polly has paid a total of $20,000 into Evergreen's qualified employee pension plan. Under the plan, Polly is to receive $250 per year from age 65 until she dies. Pricilla and Polly turn 65 during the current year and retire. Each of them has a life expectancy of 12 years from the date of retirement. Discuss the differences in the treatment of the $250 payments each of them receives.

Twenty Years Ago Pricilla Purchased an Annuity Costing $19,500 That