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Roth on Salary Continuation
Old 01-01-2006, 09:17 PM   #1
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Roth on Salary Continuation

I'm on a year long salary continuation with full benefits before I have to be worried about really being FI. I will be continuing my saving (hopefully increasing it) and 401K maxing during the year, this was all oked by the company.

The question is, does salary continuation count as earned income so I can also make a 2006 Roth contribution?

Seems like if I can do 401K I could also do Roth.

Jeb
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Re: Roth on Salary Continuation
Old 01-03-2006, 07:57 PM   #2
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Re: Roth on Salary Continuation

Since no one answered, I figured it was to obvious or no one want to play Financial Advisor, so I called TD Waterhouse today. I have about 20% of my money invest there in assorted mutual funds and money markets so I get free advise.

I was told if I pay income tax on the money, it is earned income, and I can use some of it to add to my Roth.

Jeb
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Re: Roth on Salary Continuation
Old 01-04-2006, 04:04 PM   #3
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Re: Roth on Salary Continuation

Quote:
Originally Posted by Jeb-NY
Since no one answered, I figured it was to obvious or no one want to play Financial Advisor, so I called TD Waterhouse today.* I have about 20% of my money invest there in assorted mutual funds and money markets so I get free advise.

I was told if I pay income tax on the money, it is earned income, and I can use some of it to add to my Roth.

Jeb
Sorry Jeb... did not see your post, but what they said is true... you will get a W-2 just like you were working, so it is considered salary.
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