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That is correct - only EARNED income may affect your social security benefits.
Earned income is from wages and self-employment income.
Other income types - pensions,m IRA distributions, rental income, interest in the bank, capital gains, etc - will NOT affect your social security benefits.
Thus - IRA distributions will NOT affect your social security benefits and will NOT be counted toward the $16,920 annual limit.
But IRA distributions are generally taxable - and yes - you will report that distribution on your income tax return.
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