Retirement Question 1 of 75 If a taxpayer\'s pension or annuity includes contrib

Question

Retirement Question 1 of 75 If a taxpayer's pension or annuity includes contributions that were previously included in gross income, the taxpayer may generally O Exclude the distributions from income, but only up to the amount of cost. o Use the simplified method to compute the tax-free part of the payments f they began receiving payments after November 18. 1996 Assume that the tax-free part of the payment will remain the same each year, even if the amount of the payment changes. Make all the choices listed above. O Mark for follow up Question 2 of 75 When a taxpayer receives Form 1099-R with no amount entered in box 2a and code 7 in box 7 (with the IRA box checked) the entire distribution: O Is most likely taxable. O Has been rolled into a traditional IRA or into another qualified plan. O Is most likely not taxable. O Is at least partially non-taxable. Mark for follow up

Explanation / Answer

solution -1) a. Excluded the distributions form income, but only up to the amount of cost.

Explanation:

According to the IRS(Internal Revenue System) has given information that the pension of annuity included contributions that were previously included in gross income that should excluded distributions from income but the tax payer should mention about when the tax free payment part has started on his/her tax returns.

Solution-2:-

When a taxpayer receives Form 1099-R with no amount entered in box 2a and code7 in box7 the entire distribution:-

a. is most likely taxable.

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