30. 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.