Q. I will have about $1.5 million in my Thrift Savings Plan when I retire. I am planning on getting an annuity with those funds. Because it is part of my retirement funding, will this be counted against me with respect to the Social Security earnings limits? In other words, will I have to pay additional taxes on what I have earned in my retirement account because my income will be in excess of the Social Security earnings limits?
A. The income will not be counted as earned income for means testing but will be counted as income for determining the taxability of your Social Security benefits.
