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Backdoor Roth IRA: How it works and how to open one

Zero Single, head of household, or married filing separately and you did not live with your spouse at any time during the year $125,000 $125,000 but $140,000 Reduced amount Zero If your income is too high to contribute to a Roth, going through the backdoor can be your way in, since the IRS does not limit who can convert a traditional IRA to a Roth IRA. These accounts can be opened at banks and brokerages that offer IRAs. If your retirement plan is part of a 401(k) offered by an employer, the associated financial services company can also help you navigate the logistics.

EDITORIAL: Everybody should have a nest egg

BY THE EDITORIAL PAGE STAFF OF T HE FREE LANCE-STAR LAST YEAR, the Rappahannock United Way helped more than 600 local low-income households pay their mortgages, rent and transportation bills so they could continue to work (if they still had jobs) and remain in their homes during the pandemic. Many Asset Limited, Income Constrained Employed (ALICE) workers are just one paycheck away from catastrophe. Last month, the Virginia House of Delegates passed a bill patroned by Del. Luke Torian, D-Dumfries, that would require employers with five or more employees who do not currently offer a qualified retirement plan to set up automatic payroll deductions to fund Roth individual retirement accounts (IRA) for them. AARP estimates that 1.8 million Virginians do not have a retirement plan at work.

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