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Returning Member
posted Jan 15, 2023 6:17:42 AM

Sick Leave Payout at Retirement

Is sick-leave payout at retirement considered "earned income" (in relation to a Roth IRA contribution)?   

I retired in 2021 but deferred my sick leave payout to 2022.  Can I use these funds to contribute to a Roth IRA?

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1 Best answer
Level 15
Jan 15, 2023 7:48:04 AM

The IRS treats an amount in box 1 of a W-2 (minus any amount in box 11) as compensation that will support an IRA contribution.

2 Replies
Level 15
Jan 15, 2023 7:36:27 AM

Check back. I will page @dmertz 

Level 15
Jan 15, 2023 7:48:04 AM

The IRS treats an amount in box 1 of a W-2 (minus any amount in box 11) as compensation that will support an IRA contribution.