I’ve been retired for 2 years. My union has paid retirees as myself a 3% bonus this year with the new contract they negotiated. Is that bonus considered earned income so that I may deposit it into a Roth IRA?
Asked on 10/29/21, 5:23 pm
1 Answer from Attorneys
Richard Bryan
Richard Bryan Attorney PC
If you've retired and are receiving a pension the special bonus isn't going to be earned income. The amount will be included in the Form 1099-R you'll get in January, 2022. If it's not, I would revisit the question, but I can't see how the bonus would be reported on a Form 1099-Misc and reported as "other income," and they're not sending a W-2 for that amount.
Good luck.
Answered on 10/29/21, 5:37 pm
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