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Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3152
Experience:  EA, CEBS - 35 years experience providing financial advice
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Is an IRA distribution considered as income in reaching the

Resolved Question:

Is an IRA distribution considered as income in reaching the limits that impact the amount of social security reduction for SS recipients?
Submitted: 7 years ago.
Category: Tax
Expert:  Bill replied 7 years ago.
An IRA distribution is not considered earned income for purposes of the earnings test which requires that benefits be paid back if the amount of earnings from working exceeds certain limits ($14,160 in 2009) under full retirement age. However, an IRA distribution is considered income for purposes of determining whether a portion of a person's social security benefits are taxable.
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Customer: replied 7 years ago.
If the individual is not of full retirement age (1 year to go) but is receiving SS are the rules the same, i.e.IRA distribution is not considered where the earnings limit , I believe, is 14.500 this year?
Expert:  Bill replied 7 years ago.

The IRA distribution is not considered earned income for purposes of the earnings test regardless of your age. It is considered unearned income and will have no effect on your social security benefits.

 

https://www.socialsecurity.gov/OACT/COLA/rtea.html