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I retired but receive a pension / W2, is this considered still employed?

 
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6 Replies
DS30
New Member

I retired but receive a pension / W2, is this considered still employed?

No, you will not be considered still employed if you retire and receive a pension income.

If you are retired and receive a pension income, you should receive a Form 1099-R that will report your pension income.

If you are receiving a W-2 for your pension income, you will need to contact your former employer to make them aware of this situation and make the necessary corrections.

I retired but receive a pension / W2, is this considered still employed?

Is there any amount specified in Box 11 of your form?

I retired but receive a pension / W2, is this considered still employed?

It is sometimes proper for your pension to be on a W-2 such as in the case of non-qualified deferred comp types of plans.   You can contact your employer but if they insist that they will not correct it, this is likely why.  Just report the income on your tax return the same way that they have reported it on your forms.  

TomD8
Level 15

I retired but receive a pension / W2, is this considered still employed?

If you retired during the year you'd receive a W-2 for your wages or salary through your final pay period.  But your pension or retirement income would be reported to you on a 1099-R, not a W-2.  Make sure your employer isn't giving you a 1099-R and a W-2 for the same income, because then you'd be double-taxed.

If you're no longer working, you're not "still employed."

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Dcn Mike
New Member

I retired but receive a pension / W2, is this considered still employed?

I am retired an recieve a pension, I am workimng for a different emploter with no pension plan, can i contribute to Roth and have no income limitations?

ToddL99
Expert Alumni

I retired but receive a pension / W2, is this considered still employed?

Yes, you can contribute to a Roth IRA as long as you have earned income (and meet the income limitations).  Receiving a pension does not disqualify you from continued saving.

 

From the IRS IRA Contribution Limits:

 

For 2021, 2020 and 2019, the total contributions you make each year to all of your traditional IRAs  and Roth IRAs can't be more than:

  • $6,000 ($7,000 if you're age 50 or older), or
  • If less, your taxable compensation for the year

In addition to the general contribution limit that applies to both Roth and traditional IRAs, your Roth IRA contribution may be limited based on your filing status and income.

 

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