Pension Benets. (Obj. 2) On August 10, 2020, Don turned 65 and received his rst pension payment. Over the years, he had contributed $68,900 to his employers qualied retirement plan. Taxes were paid on $24,700 of this amount. The remaining $44,200 was contributed after the law was changed to permit pre-tax contributions to the plan. Don is to receive monthly benets of $425 on the same day every month for the remainder of his life.

a. From the 5 monthly payments Don receives in 2020, what amount is included in gross income?

b. If Don receives 12 payments in 2021, what amount does he include in gross income?

c. If Don lives longer than his expected 260 payments, how much of each months $425 payment will be included in his gross income?