Roth IRA
My son has been laid off. He will receive 6 months in severance pay. Is he still eligible to contribute to his Roth IRA?
Thank you in advance.
Mary
My son has been laid off. He will receive 6 months in severance pay. Is he still eligible to contribute to his Roth IRA?
Thank you in advance.
Mary
Permalink Submitted by Alan - IRA critic on Mon, 2023-01-30 15:32
Yes, the severance pay will be reported on a W-2 like other salary, and therefore will be earned income for Roth IRA contributions.