Richard, who retired on April 30, 2020, receives a monthly employee annuity benefit of $1,400 payable for life, beginning May 1, 2020. During his years of employment, Richard contributed $29,400 to the company's plan. Richard's age on May 1 is 66. Using the simplified method, how much of the $11,200 annuity payment received during 2020 may Richard exclude from gross income? a. $11,200 b. $1,120 c. $427 d. $1,680
Richard, who retired on April 30, 2020, receives a monthly employee annuity benefit of $1,400 payable for life, beginning May 1, 2020. During his years of employment, Richard contributed $29,400 to the company's plan. Richard's age on May 1 is 66. Using the simplified method, how much of the $11,200 annuity payment received during 2020 may Richard exclude from gross income? a. $11,200 b. $1,120 c. $427 d. $1,680
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 35P
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Question
Richard, who retired on April 30, 2020, receives a monthly employee annuity benefit of $1,400 payable for life, beginning May 1, 2020. During his years of employment, Richard contributed $29,400 to the company's plan. Richard's age on May 1 is 66. Using the simplified method, how much of the $11,200 annuity payment received during 2020 may Richard exclude from gross income?
a. |
$11,200
|
|
b. |
$1,120
|
|
c. |
$427
|
|
d. |
$1,680
|
|
e. |
None of these
|
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