Roth IRA Qualifying Income
I receive a monthly severance pay through June 2010 due to a work force reduction. I want to contribute to my Roth IRA in 2010. The contribution must come from qualifying income. I cannot find any information to ensure that ‘Severance Pay” is considered qualifying income. Federal Income Tax, Social Security Tax, etc. are taken out of the monthly severance check.
Permalink Submitted by Alan Spross on Fri, 2010-02-19 05:00
Your severance pay will be reported on a W-2 and therefore can be considered earned income for making an IRA contribution.
Permalink Submitted by Tom Rogers on Fri, 2010-02-19 17:46
That makes good sense. Thank you.