Q. I understand the lump-sum annual leave payment at retirement cannot be put into the TSP for deferred tax or matching purposes. However, can you elect to defer to receive the lump-sum payment until the following calendar year, such that it counts as earned income in that following year rather than the year you retire?
If nothing else, it would at least count as earned income on the basis of which I can make another year’s worth of contributions to my brokerage Roths.
A. Deferred compensation is specifically excluded from serving as the basis for IRA contribution eligibility.