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Penny purchased an annuity with $500,000 from her 401(k). She is to receive $50,000 a year for life; her life expectancy is 15 years. How
Penny purchased an annuity with $500,000 from her 401(k). She is to receive $50,000 a year for life; her life expectancy is 15 years. How much of her first year's annuity payment of $50,000 will be taxable as income?
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