I retired at the end of December 2022. My employer allows lumpsum contribution of unused Paid Time Off into 457b plan. I elected that option and my unused PTO was converted to a dollar amount and contributed to my 457b account for year 2023.
Since I retired at the end of 2022, I won't have any earned income in 2023. I will only have pension and Social Security as my income.
I keep reading everywhere that you cannot contribute to 401K without earned income. I thought that rule applies to 457b as well? If that's the case, why did my employer allow me to contribute to 2023?
Am I going to have issues when I file my taxes next year?!
