Which of the following forms of income, if in excess of the
annual exempt amount, will cause a reduction in a retired person’s
social security benefits?

(b) Earned income in excess of the annual limitation
will cause a reduction in a retired person’s social security benefits.
Answer (b) is therefore correct, since “director’s fees” are considered
earned income. Answers (a), (c), and (d) are incorrect
because proceeds from an annuity, pension payments, and stock
dividends are not considered earned income.