Which of the following is correct regarding the federal income taxation of annuities that are purchased with after tax dollars?

a. Tax must be paid annually on the investment income that accrues during the accumulation period

b.	Payments received during the liquidation phase are partially exempt from taxation

c.	If funds are withdrawn during the accumulation period, they are taxed as ordinary income

d. There is no tax since each payment is considered compensation for a loss (ie., retirement)

Beta Corporation has 1,000 employees eligible to participate in the firm's pension plan, and 100 of these employees are considered highly compensated. All of the highly compensated employees are covered by the plan. What is the minimum number of the 900 non-highly compensated employees who must be covered by the plan in order for the plan to satisfy the ratio percentage test? A. 630 B. 900 C. 667 D 500