Question 6025 of 303 · California Life-Only Agent Exam
Annuity withdrawals from a nonqualified annuity are taxed on a
Exactly one answer is correct.
You got of questions right. Here on the question pages nobody remembers which ones you got wrong. The trainer saves your progress and asks the mistakes again until they stick.
Or free: the 10 questions most people get wrong
Show solution
Correct answer to question 6025
- D: last in, first out basis, so earnings are taxed first
Explanation
For nonqualified annuities purchased after 1982, earnings come out first and are taxed as ordinary income.
More questions: Annuities
- 6026An annuitization of a contract means
- 6027Group annuities are most often used to
- 6029An annuity's death benefit during the accumulation period is typically paid to
- 6030Reverse mortgage status matters in an annuity suitability review because
- 6001An annuity is primarily designed to
- 6002The accumulation period of an annuity is