I am retired but I
still get vested “restricted stock units” every year. When they
vest, the company withholds payroll taxes and I get a W-2. Would this
qualify as earned compensation and allow me to contribute to a Roth
IRA? My other earnings are from dividends, interest and capital
gains which would do not qualify as earned income.
When I read IRS Bulletin 590-A, it says anything on a W-2, box 1 is earned income and then later says that deferred compensation is excluded from the definition of earned income. I can not find the IRS definition of deferred compensation as used in Bulletin 590-A.
