Juan is single and retired on January 1, 2018, at age 62. He is entitled to receive monthly payments of $1,500 over his life from his employers qualified pension plan. The payments began January 1, 2018. He contributed $71,500 to the plan prior to his retirement. Using the simplified method, how much of the payments will be included in his income for 2018? Use the life expectancy tables. Use Anticipated monthly payments.

A. 1,225

B. 3,300

C. 18,000

D. 14,700