Contributing to a Roth IRA in a Low-Income Year
There's not much good news in today's coronavirus-induced economic calamity, between mass layoffs, furloughs and salary reductions, temporary or otherwise. Millions of Americans are likely to end the year with a reduced income. But a crisis sometimes offers opportunities. For those who are financially able, a low income year offers a unique option to save in a Roth IRA and pay a low tax rate on your contributions.
Rodney Brooks
An award-winning journalist, writer and author and my specialty is retirement planning and other personal finance issues. I have written for many national publications, including USA TODAY, The Washington Post, U.S. News & World Report, AARP and National Geographic. I am available to speak on personal finance, financial literacy and the racial wealth gap.
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The author tells the history of the Freedman’s Savings Bank, how it grew much too quickly, why it failed and the impact on Black America. The Freedman’s Bank offered a safe depository for formerly enslaved people, expanded quickly and gained millions in deposits – mostly ranging from $5 to $50. But inexperience and corruption doomed it to failure, costing may of the small depositors their savings.
