Question 9008 of 303 · California Life-Only Agent Exam
Annuity payments to an annuitant under a nonqualified annuity are taxed using
Exactly one answer is correct.
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Correct answer to question 9008
- B: an exclusion ratio that separates principal from earnings
Explanation
The exclusion ratio spreads the investment in the contract across expected payments. Once principal is recovered, payments are fully taxable.
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