ratio for the annuitycscd ad the a mnountef the pension to be included in gross income. 34. Peter Seaman, at age 45, purchased an annuity which will pay him $250 a month for life once he reaches age 65. He paid in $25,000. At retirement, he will have quarterly payments from the annuity. Peter receives his first annuity payment three months after the starting date (January 20). Perform the calculations and determine what amount he may exclude from gross income. What was the exclusion ratio? What was the adjusted multiple used to calculate the exclusion