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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75540  
Subject: Re: Roth IRA Date: 4/22/1998 8:49 AM
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Greetings, Mochen, and welcome.

<<I recently retired. Along with my pension and railroad retirement, I am receiving a monthly paycheck from the company buyout plan. According to the company letter, although no longer working for the company, I will still be considered an employee until my such time as when I receive my last buyout check.

Can I open a Roth IRA account? And will I still be able to put into it after my last buyout check?

My Foolish plan is that it will benefit my wife, who is currently unemployed, rather than myself.>>

I assume you are collecting some kind of severance checks as part of your early retirement package. If so, they will be reported as wages in Box 1of your Form W-2 for the year. Therefore, you may contribute up to a maximum of $2K each to individual IRAs for you and your wife for that year. If the amount that you receive as severance is less than $4K, then your combined contribution for the two of you will be limited to the smaller amount. Double check with your old firm's benefits administrator. As long as those checks are reported in Box 1 of your W-2 for the year, you will be safe contributing to an IRA.

Regards….Pixy
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