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Zeke, age 63, is a participant in a qualified plan whereby he is to receive $2,000 per month for an expected period of 25 years.

Zeke, age 63, is a participant in a qualified plan whereby he is to receive $2,000 per month for an expected period of 25 years. Zeke's adjusted basis in the qualified plan is $200,000. Zeke asked you what amount of each annuity payment is subject to income tax. He is in the 20% tax rate.

$666

$1,334

$333

$2,000

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