U.S. News & World Report: “Contributing to a Roth IRA in a Low-Income Year”
“We advise everyone under the income limit to seriously consider contributing,” says Greg Dillon, principal of OneTeam Financial, which has offices in Red Bank and Cranford, New Jersey.
However, you might want to delay your contribution if you expect to encounter financial hardship this year. “Given all of the uncertainty as far as employment for the remainder of year, first make sure you have an adequate cash cushion,” Dillon says. “In some instances, folks don’t know if they will be out of work for a few months or longer. You want to make sure they have enough for the tax bill and to pay bills if they don’t get back to work in short order.”