Post-Retirement Roth IRA Contributions

[Guest cstroble]

I am 56 years old and in September 2003 will retire from Federal Civil Service and will receive severance pay under the government's "Voluntary Separation Incentive Plan". The incentive will be paid to me in 26 biweekly installments after my retirement. The incentive is "income" and taxed as such. I have been told that it will be reported to the IRS as Wages, Tips and Other Compensation in Block 1 of my W-2. My question is, assuming I am not employed after retiring, can I continue to contribute to my Roth IRA during the period I receive the separation/incentive pay installments?

[mbozek]

According to IRS PUb 590, P 9, compensation eligible for an IRA includes any amounts paid in box 1 of the W-2.