Q. I am a retired federal employee, having worked for the Social Security Administration. I have funds accumulated in the Thrift Savings Plans. I am getting close to age 70 and am considering the purchase of a life annuity with some or all of those funds, and know that those payments will be taxed by the Internal Revenue Service. But what about the states — particularly, for me, Alabama? Are these TSP annuity payments taxable by Alabama?
A. I don’t give state tax advice for each of the 50 states. You should ask an Alabama CPA for specific advice.