You Might Be Able to Invest Your Stimulus Check in an IRA
Are you still working? In that case, you might want to put your second stimulus check into an IRA and save it for later. Good news, there’s a way to do it.
If you’re over the age of 50 you can contribute up to $7,000 in one or more IRA in 2012, but you can only do so if you have earnings from work and you can’t put more than you earner into the account.
Some folks might not have been able to hit the $7,000 mark last year, but you can still contribute to an IRA for the 2020 tax year since the deadline is on April 15, 2021.
And if you’re over the age of 70½ and still working, you can also contribute to a traditional IRA thanks to the SECURE act which came into effect last year. Of course, there have never been any age-based restrictions on contributions to a Roth IRA.
And, there you have it. We hoped all this information is helpful and that we’ve cleared the air on what you should expect if you’re a Social Security recipient! Let us know your thoughts in the comments down below!
