Happy Winter Solstice and Merry Dividend Season to all of my fellow pagans and financiers!
And Merry Christmas! Happy Hanukkah! Happy Kwanzaa! Happy Diwali! Happy Festivus! Seasons Greetings! It’s a beautiful time of year when the world’s people and faiths celebrate.
2X the Contribution, 1/2 the Work
Earning a little income in your retirement years is becoming increasingly common.
Some choose to work part-time for benefits or socialization or fun, and others accidentally make a little extra while pursuing their hobbies or passions.
With a powerful investment portfolio behind these (early) retirees, this income is often just added to a Roth IRA for further tax-free growth.
Now, what if there was a way to double those Roth contributions without working or earning more? Turns out, there is.
The Retirement Savers Contribution Credit, aka the Saver’s Credit, is a nice incentive for households to contribute to qualified retirement accounts (IRAs, 401ks, etc…)
It’s also a nice incentive for early retirees who make a little hobby / side-hustle money to make MASSIVE Roth conversions on Uncle Sam’s dime.