Hunter retired last year and will receive annuity payments for life from his employer's qualified pension plan of $30,000 per year starting this year. During his years of employment, Hunter contributed $130,000 to the plan, and the total expected return based on his life expectancy is $200,000. All of the contributions were on a pre-tax basis. This year, Hunter will include what amount in income?
This solution provides the correct answer with explanation to the annuity payments/pension plan question presented. The exact amount that Hunter must include in his income is calculated.