If a taxpayers pension or annuity includes contributions tha

If a taxpayer\'s pension or annuity includes contributions that were previously included in gross income, the taxpayer may generally

Exclude the distributions from income, but only up to the amount of cost.

Use the simplified method to compute the tax-free part of the payments if they began receiving payments after November 18, 1996

Assume that the tax=-free part of the payment will remain the same each year, even if the amount of the payment changes

Make all the choices listed above

Solution

Solution: Make all the choices listed above

Explanation: The total amount of the pension or annuity that is allowed to be excluded from income is often limited to your total. The tax-free part often remains the same each year, also if the payment amount changes. In case it begin receiving annuity payments from a qualified retirement plan, then may use simplified method to figure the tax-free payment part.