Save and 11-20 21-30 31-40 Review Entire Course 31. Over the 15 years that she owned her nonqualified variable annuity, Kate invested a total of $25,000 into the contract. At the age of 70, she annuitized the contract's full $50,000 value under a straight life option. According to IRS life expectancy tables, Kate is expected to live 16 years. During the first year of annuitization, Kate received $4,500. How much of that income is taxable? (Search Chapter 5) a. $0 ob. $1,563 c. $2,937 od. $4,500 32. For nonqualified annuities purchased today, at what point does the annuitized income stream generated from such contracts become fully taxable? (Search Chapter 5) a, when the full amount of principal has been distributed E R T Y U o