Early out incentive and IRA


Q: I am a 56-year-old FERS retiree who accepted the early out incentive agreement with the Postal Service in November of 2009 and have not worked since. Would the $5,000 incentive payment I am to receive in November 2010 be eligible for a $5,000 IRA contribution for tax year 2010?

A: No.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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