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Published: Jan. 4, 2021, 9 a.m.

I\u2019m thrilled to be back sharing the latest retirement headlines with you after my short holiday break. The biggest news on the retirement radar this week is that the 2nd Coronavirus stimulus package has passed. Together, we\u2019ll take a look at the most relevant parts. Then I\u2019ll answer the question: do you need a Roth IRA even if you make more than the income limits allow for? Let\u2019s start preparing for tomorrow by learning today. Press play now.\xa0

Outline of This Episode

• [1:22] What will the Coronavirus stimulus package bring for us?
• [7:19] Health expenses are now deductible after 7.5% AGI
• [9:07] Standard deduction + $600 if you are married filing jointly in 2021
• [10:45] Unemployment benefits have been extended
• [13:09] Does Janet need a Roth IRA?

Will you be cashing a $600 stimulus check?

The 2nd Coronavirus stimulus package has recently been passed and rather than have you read this 5500 page piece of legislation, I\u2019ll cover the highlights that most pertain to you. Jeff Levine, @CPAPlanner on Twitter was a great source to help me understand the most important information in this bill.\xa0

Perhaps the biggest news out of the stimulus package is that new stimulus checks are heading our way. These checks aren\u2019t structured exactly the same as the last ones. The checks are $600 for each person in your household if your income falls under a certain amount. Find out the income limitations by listening to the details here.\xa0

If you subscribe to the Every Day is Saturday newsletter this week, we\u2019ll have a link to a calculator that can help you calculate the amount you\u2019ll receive.\xa0

Health expenses are now deductible after 7.5%

Another change brought about by the Coronavirus stimulus package is that healthcare expenses are deductible after 7.5% of your income. This number often bounces back and forth between 10% and 7.5% of your adjusted gross income (AGI). This means that your healthcare expenses must be 7.5% of your income to be deductible and even then it only counts for the amount that is over 7.5% of your income.\xa0

Unemployment benefits have been extended

If you found yourself unemployed, like many this year, there\u2019s good news. The stimulus package added federal unemployment benefits for another 11 weeks. This means that $300 per week will be added to your state\u2019s traditional unemployment benefit.\xa0

These weren\u2019t the only changes in the bill. You can learn more about how the latest Coronavirus stimulus bill could affect you by listening to this episode of Retirement Starts Today Radio.

Do you really need a Roth IRA?

Janet\u2019s financial advisor told her that since she is over the income limitations to save in a Roth IRA that she doesn\u2019t need to open one. However, Janet is a few years away from retiring and she is worried about retiring without one.\xa0

In my opinion, everyone could use a Roth IRA eventually. If your current income doesn\u2019t allow for it, you can always fund a Roth IRA with a Roth conversion. Listen in to hear how you can fund your Roth most effectively while filling up your tax bracket.\xa0

Resources & People Mentioned

• Jeff Levine on Twitter @CPAPlanner
• Nerd\u2019s Eye View Blog by Michael Kitces

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/
• Follow Ben on Twitter:https://twitter.com/retiremeasap

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