Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
- Posts: 749
- Joined: Tue Jul 03, 2007 1:47 pm
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.
- Posts: 6563
- Joined: Thu Mar 08, 2007 6:06 pm
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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