Hunter 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,Hunter contributed $130,000 to the plan.Based on IRS tables,his life expectancy is 260 months.All of the contributions were on a pre-tax basis.This year,Hunter will include what amount in income?
A)$0
B)$6,000
C)$24,000
D)$30,000

Question

Quizplus · Accepted Answer

D)If amounts are contributed on a pre-tax basis,Hunter received a tax benefit when the contribution was made so all amounts are taxable.

Hunter Retired Last Year and Will Receive Annuity Payments for Life