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NON QUALIFIED FIXED DEFERRED ANNUITIES?
Lucy buys a nonqualified fixed deferred annuity with a $25,000 premium. Before the annuity starting date, Lucy withdraws $3,000 from the annuity now valued at $33,000.
A) Lucy will be taxed on $2,000 as capital gains, under the first in, first out (FIFO) method.
B) Lucy will be taxed on the full $3,000 as ordinary income under the last in, first out (LIFO) method.
C) Lucy will be taxed on $1,500 as capital gains under the exclusion ratio.
D) The withdrawal is tax free.
2 Answers
- ?Lv 77 years ago
Lucy should employ a qualified accountant that did her own homework.
It is a good idea to be aware of the country you are thinking about as well.
- carmelcavalierLv 47 years ago
Lucy SHOULD have a grip on her debt and NOT rely on mother government and Obama to help her. NO multiple choice for Common Sense!!!!
