Myra retired last year from Whiplash Company after working there


Question Description:

24.99

Myra retired last year from Whiplash Company after working there for 30 years. She elects to take her retirement benefits in the form of a lifetime annuity. Her retirement balance consists of $40,000 of employer contributions, $80,000 of her before-tax contributions, $20,000 of her after-tax contributions, and $60,000 of investment income. The plan will pay her $1,500 per month based on her life expectancy of 22 years. In 2007, Myra receives twelve $1,500 payments. What is her taxable income?

Answer

24.99