Q. The state of Hawaii does not tax social security and government pensions and annuities. If I purchase an annuity through TSP with my TSP balance when I retire and begin receiving lifetime income, is this considered a “government annuity” and therefore not subject to Hawaii state income tax?
A. That will be a retail annuity contract and I doubt that it will qualify as a government annuity, but you should consult a Hawaii CPA to be sure.
