A felony doesn't preclude you from claiming Social Security if you work enough years to qualify for benefits. Also: backdoor Roth IRA contributions, 2020 taxes and stimulus money.
At the end of a legislative session marked by the COVID-19 pandemic, legislators passed a series of bills to provide protections for those affected by the coronavirus.You mentioned in a previous column that a backdoor Roth contribution could be expensive if you have a large pre-tax IRA. I was in that situation, and opted to first roll my IRA into my employer’s 401. I then made a nondeductible contribution to a new IRA and shortly afterward converted it to a Roth.
For those who don’t know, backdoor Roths are a two-step process for people whose incomes are too high to contribute directly to a Roth. Instead, they contribute to a regular IRA and then convert that money to a Roth because there’s no income limit on conversions. Taxes are usually owed on Roth conversions, based on how much pre-tax money you have in IRAs. But the conversion can be tax free if the contribution was nondeductible, you convert shortly after the contribution and you don’t already have a pre-tax money IRA.Some questioned the legality of this particular loophole, but Congress blessed it in 2017 as part of theMy 2019 tax return was electronically submitted May 11 and my income was low enough to qualify for a stimulus payment.
People who didn’t get checks or got too little aren’t out of luck. The stimulus checks were an advance payment of a credit that will be added to people’s 2020 tax returns. If you should have received a check but didn’t, you’ll get the full credit added to your refund next year.
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