Explain tax consequence of her withdrawal

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Reference no: EM131957085

Assume that Jane, now age 41, deposited $12,000 in annuity premiums and the investment income increase the value of her account by $1,000, so its total current value is $13,000. Now assume that she withdraws $4,000 this year. Please explain the tax consequence of her withdrawal in the current year.

Reference no: EM131957085

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