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lisabon 2012 [21]
2 years ago
9

Lorraine invested $50,000 in a nonqualified deferred annuity at the age of 50. Three years later, the contract has grown to $64,

000, and Lorraine takes a $5,000 withdrawal. The contract is still in its accumulation stage. Which of the following statements is true? a. The withdrawal is fully taxable. b. The withdrawal is not taxable. c. $4,000 of the withdrawal is taxable; $1,000 is tax free. d. $1,000 of the withdrawal is taxable; $4,000 is tax free.
Business
1 answer:
stepan [7]2 years ago
3 0

Answer:

a. The withdrawal is fully taxable.

Explanation:

When withdrawing from annuity before the age of 59.5, the amount is taxable as income. There will also be a 10% tax penalty, and there may be a surrender charge by the insurance company.

Lorraine was 53 when the withdrawal was made, so she will be affected by these charges.

It is advisable to not make withdrawals till after the accumulation phase and above 59.5 years old. Then these penalties will not apply, onlybthe income tax on the withdrawal.

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Answer:

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Answer:

7%

Explanation:

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Answer:

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Answer:

intensity of rivalry

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This scenario best illustrates an acquisition.

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