Tax & Evaluation第 101 / 110 题
Withdrawals of earnings from a non-qualified annuity before annuitization are taxed:
a.As long-term capital gains
b.On a first-in, first-out basis, so principal comes out first
c.Only when the contract is fully surrendered
d.As ordinary income on a last-in, first-out basis, so earnings come out first
解析
Non-qualified annuities use LIFO ordering, meaning the taxable earnings are deemed withdrawn before the after-tax principal, and they are taxed at ordinary rates. Annuity gains never receive capital gains treatment because the growth was tax deferred, not invested in a taxable capital asset. Partial withdrawals are taxable when taken, not only at full surrender.
法律依据: Internal Revenue Code免费刷完整 110 道题库 — 无需注册。
同考点相关题目
- Which cost basis method applies to mutual fund shares if the shareholder makes no election?
- An investor exchanges shares of a growth fund for shares of a bond fund within the same fund family at net asset value. For tax purposes, this exchange is:
- A shareholder of a municipal bond fund receives $900 of income distributions and a $500 capital gains distribution. The federal tax treatment is:
- A variable annuity purchased inside a Traditional IRA with fully deductible contributions is distributed at age 65. The distribution is:
- An investor dies owning fund shares purchased for $20,000 that are worth $50,000 on the date of death. The heir's cost basis is generally:
- A donor wants to make a large lump-sum contribution to a 529 plan without using lifetime gift tax exemption. Which feature helps?