Vida Grupal y AnualidadesPregunta 701 de 716
In a QUALIFIED annuity funded entirely with pre-tax dollars, distributions are:
a.Fully taxable as ordinary income, because there is no after-tax cost basis
b.Entirely tax-free, because the contributions to the plan were originally made with after-tax dollars
c.Partly excluded from tax by the exclusion ratio
d.Taxed as long-term capital gains
Explicación
Since a fully pre-tax qualified annuity has no after-tax basis, the entire distribution is taxable as ordinary income. The exclusion ratio applies only when there is after-tax basis, as in a nonqualified annuity.
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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)