Funding Roth with deferred income
Hi,
My friend worked for a State agency over long time. The agency allowed the employees to accumulate the vacation times they never used. And by the time she retired from the job, her employer paid her un-used vacation time over a 10 year period as her income. I am wondering if she could use that income to fund her retirment account. She is allowed to contribute that income to her 401k. So I think she should be able to use that money to fund her Roth IRA. Correct me if I am not right. Thanks
Julia
Permalink Submitted by Alan - IRA critic on Sun, 2014-01-12 17:35
Yes, the income can be used for an IRA contribution as long as there is some left after the 401k contributions.
Permalink Submitted by Julia zhai on Fri, 2014-01-17 15:58
Thanks so much, Alan! Julia