Julian receives a life annuity from his qualified pension that pays him $$5,000$ per year for as long as he lives. Later this year Julian will recover the remainder of his cost of the annuity. Which of the following correctly describes how the annuity payments are taxed after Julian has recovered the cost of the annuity?

Multiple Choice

Julian will continue to apply the annuity exclusion ratio to determine the amount of each annuity payment includible in gross income.

Julian will include the entire amount of each annuity payment in gross income after he recovers the cost of the annuity.

The entire amount of each annuity payment is excluded from gross income after Julian recovers his cost of the annuity.

Julian must request that the IRS calculate his exclusion ratio based upon a revised life expectancy.

All of these choices are correct.