It's not Wage. But it might be taxable. Have you confirmed their eligibility and their amounts? Is this a governmental employee? Did they make too much to qualify for Roth IRA? Did you check the income limits?

"for 2022, if you are age 50 or older, you can make a contribution of up to $27,000 to your 401(k), 403(b) or governmental 457(b) plan ($20,500 regular and $6,500 catch-up contributions) and $7,000 to a Roth IRA ($6,000 regular and $1,000 catch-up IRA contributions) for a total of $34,000."