Roth IRA qualified income?

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beatle2020
Posts: 5
Joined: Thu Aug 15, 2013 1:52 pm

Roth IRA qualified income?

Post by beatle2020 »

I retired 12/31/2013.(age 64) In March of this year(2014) I received a $13,000 bonus for the previous year. This was common with the company I worked for. I will get a W-2 at the end of 2014 that will list this as income. Question, can I contribute the $6500 to a Roth IRA this year and be qualified for this IRA? I am drawing social security and a pension.
gabriel1970
Posts: 98
Joined: Sat Jan 04, 2014 5:13 pm
Location: Boston, MA

Re: Roth IRA qualified income?

Post by gabriel1970 »

As far as I know the this money is your 2014 earned income and therefore it qualifies you to a full 204 Roth contribution. The pay date determines the tax year of the income, not the date the work is done.
HIinvestor
Posts: 1833
Joined: Tue Apr 08, 2014 3:23 am

Re: Roth IRA qualified income?

Post by HIinvestor »

As long as you're on a cash basis for taxes, I agree with the above. H did some work in 2013 but was paid in 2014. We are using the amount he was paid and my income for 2014 to fund my traditional IRA that we rolled over to my Roth IRA for 2014. His work and mine are both wages for actual work performed (not passive income).
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