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Level 2
posted Jan 21, 2025 3:24:34 PM

In 2025, I will only have RSUs that will vest & div/int as income. Are RSUs considered ordinary income the year they vest? Can I make Roth & HSA contributions in 2025?

I retired in 2024 and am trying to do tax planning for 2025 - first year without wages in 30 years! I need to understand my income types for ACA and would like to take advantage of a Roth IRA contribution and HSA contribution if possible. I project my total income to be under $100K.

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1 Replies
Expert Alumni
Jan 21, 2025 3:40:38 PM

Yes, Restricted Stock Units (RSUs) are considered earned income in the year they vest. RSU income is treated as taxable compensation, so you can contribute to a Roth IRA.

 

You can contribute to a Health Savings Account (HSA) for 2025 if you are enrolled in a high-deductible health plan (HDHP). 

 

For more information, see:

- Roth IRA Contributions