By Reg Jones
Q. I plan to retire in December 2014, when I will be 60 years and six months old. I plan on drawing the special retirement supplement for about 1½ years. I would be taking approximately $1,000 a month from my Thrift Savings Plan. Would the amount I receive from TSP be counted as earnings toward my $15,000 yearly limit? Also, when I start to draw my regular Social Security check, will the amount I receive from TSP be counted as income also?
A. Reg: No, the amount you receive from your TSP account wouldn’t be considered earnings. Only earnings from wages and self-employment count.
Mike: Your TSP withdrawals are not considered earned income for the purpose of means testing either the FERS supplement or Social Security old-age benefits.