We’d have to know more about your severance package to answer your question. Severance payments are generally treated the same as W-2 wages. In such cases, there is no way to convert the money to a retirement account.
Income taxes, social security and Medicare will be withheld from your severance. If your company has a 401(k) or other retirement plan, you can increase your amount you contribute to those plans prior to the shutdown. That will put some money into a retirement account. I assume your 401(k) or other plans will still exist (though it may be converted). Check with your company.
If you have not done so, you can contribute up to $6,000 ($7,000 if age 50 or older) into an Individual Retirement Account.
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