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Martin retired in May 2020. His pension is $1,000 per month from a Qualified Retirement plan to which he contributed $48,000, and his employer contributed
Martin retired in May 2020. His pension is $1,000 per month from a Qualified Retirement plan to which he contributed $48,000, and his employer contributed $12,000. Martins life expectancy from the IRS mortality tables is 10 years. During 2020, he received $8,000 from the plan.
a. Using the General Rule, calculate Martins taxable income from the plan distributions for 2020.
b. If Martins contributions to the plan had been $25,000 instead of the $48,000, how much taxable income would he have to report in 2020 from the plan distributions?
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