General rule
Any amount to which this subsection applies—
(A)#
if received on or after the annuity starting date, shall be included in gross income, or
(B)#
if received before the annuity starting date—
(i) shall be included in gross income to the extent allocable to income on the contract, and
(ii) shall not be included in gross income to the extent allocable to the investment in the contract.
(B)(i)#
shall be included in gross income to the extent allocable to income on the contract, and
(B)(ii)#
shall not be included in gross income to the extent allocable to the investment in the contract.