Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
I may be receiving a buyout from work in 2013 and was wondering if the money I receive is considered earned income for Roth IRA purposes. They would be taking out taxes but not putting money into 401k or towards pension. Anyone know if I could count this money to help towards having enough earned income for my Roth? Thanks.
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- Joined: 3 Jul 2007
Well, the term is "compensation" not earned income. The best answer is to ask your employer how the W2 will be coded. If it is coded as wages like a normal W2 then it will likely be deemed compensation for the purposes of IRA qualification.
I always wanted to be a procrastinator.
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