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Business, 10.08.2021 01:30 sadie271

Ginger purchased a single-premium deferred annuity twenty years ago at age 45. She used $60,000 of after-tax funds she had accumulated over fifteen years. At age 65, she decides to annuitize over her single life expectancy (expected to be 20 years). Her annuity payment equals $750 per month. Her expected total payments are for 240 months. Which of the following statements is correct? a. One-third of her payments will be treated as taxable.
b. If she lives beyond the 240 months, she will continue to have a portion of her payments consist of non-taxed benefits.
c. In the event that she dies prior to 20 years, she can claim a miscellaneous itemized income tax deduction for the unrecovered basis.
d. If she dies before her full 20 years of payments, her gross estate will include the present value of the payments for the remaining period of time up to the 20 years.

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Ginger purchased a single-premium deferred annuity twenty years ago at age 45. She used $60,000 of a...
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