Feds - Annual Leave Payout Question

[Anonymous]

So, I am retiring from govt as of end of December this year. When I get paid for my annual leave (448 hours), is it considered as 2026 income? And if so, can I do backdoor ROTH using this payout?

[Anonymous]

It will be income in the year it is paid out, so yes, next year. You are more likely to need it as your “tide you over until your pension kicks in or you start another job” money.

How much are you thinking you will earn next year. You could probably just do a regular Roth for part of it. It’s hard to know what to advise if we don’t know what you already have.

[Anonymous]

Anonymous wrote:It will be income in the year it is paid out, so yes, next year. You are more likely to need it as your “tide you over until your pension kicks in or you start another job” money.

How much are you thinking you will earn next year. You could probably just do a regular Roth for part of it. It’s hard to know what to advise if we don’t know what you already have.

LOL. You are exactly right. I've been doing backdoor so long, I completely forgot doing a regular Roth. Silly me. Thanks PP.