Will The Annuity I Receive Be An Exception To WEP?

Mar 6 2019 - 7:12am

I worked for a United Nations Organization outside the USA for a few years. I was neither subject to SSA withholding nor subject to that country's social security withholding but I will receive an annuity based on contribution I made to a plan similar to a 401K plan. Will that be an exception to the Windfall Elimination Provision?
I have read the topic carefully but can't wrap my head around it...Thank you in advance and regards,
Leila

Hi Leila,

If your employer made contributions to the retirement plan you refer to, then your annuity would almost certainly count for Windfall Elimination Provision (WEP) purposes. But, if no employer contributions were involved then it would only count for WEP if the plan was your employer's primary pension plan (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605364#a). In other words, the annuity won't cause a WEP reduction if it was an optional savings plan (e.g. IRA) outside of your employer's pension plan, and if only you made contributions to the plan.

Best, Jerry