Long-term disability income that you receive prior to the minimum retirement age under your employer’s plan and that is shown as taxable compensation in box 1 of Form W-2 is treated as earned income for purposes of contributing to an IRA or Roth IRA. Excludable disability income and Social Security benefits payable for disability are not treated as earned income for purposes of funding a Roth IRA.
An annual payment of money by a company or individual to a person called the annuitant. Payment is for a fixed period or the life of the annuitant. Tax consequences depend on the type of contract and funding.