tyler, a 45 year old, single tax payer contributed $35,000 to a commercial annuity in 2016. the annuity is a nonqualified plan. in 2020, before the annuity start date, tyler took a nonperiodic distribution of $8,000 and used the money to pay off his credit card debt. If the value of the annuity at the time of the distribution was $40,000, how much of the distribution is taxable? Country is USA

a. $0

b. $3,000

c. $5,000

d. $8,000