Q: If I retire at the end of 2010 and receive my lump sum annual leave payment in 2011; will I be able to put money into an IRA or the Thrift Saving Plan in 2011, even though I did not actually work that year? In other words, would the lump-sum payment in 2011 be considered earned income?
A: No. The payment is considered deferred compensation and is not a basis for contribution to an IRA or the TSP.
