Tax Preparation

So if it is W-2 income can you contribute to a Roth since you have earned income?

Afraid not because box 13 is checked to indicate it is a Retirement Plan, so no payroll taxes are withheld, or owed, since it is passive, not earned, income. (no FICA or Medicare)


ETA


When I transferred to the USA subsidiary of my company the DB pension was not transferrable so my US contract stated that when I retire I will be owed a pension based on my total years record with the company. When I did retire they looked at the pension I was due based on my 18 years service in the US and the pension I would get from my 7 years service in the UK. Then they calculated what I would have received if I had done all 25 years in the US, and they make up the difference with this W-2 retirement plan. It is very generous of them and another reason why I hung on until I had 25 years service and age 55 to get the extra pension. This is also why I get 3 pension checks from essentially the same company. (I also get a 4th pension from another UK employer where I worked 6 years)
 
Last edited:
Back
Top Bottom