The new $1,400 stimulus checks are based on your adjusted gross income. Leveraging certain retirement savings strategies may help you snare a payment.
As new $1,400 stimulus checks start arriving, some people may be asking why they received less than they were expecting — or no money at all. This third round of direct federal payments was authorized by Congress and President Joe Biden earlier this month through the $1.9 trillion American Rescue Plan. As with the first two checks, the payments are based on the same income thresholds. So individuals with up to $75,000 in adjusted gross income – or heads of household with up to $112,500 or married couples who file jointly with up to $150,000 – qualify for full payments. This time, however, the payments phase out more quickly for people above those thresholds. If your adjusted gross income exceeds $80,000 and you’re single — or $120,000 as a head of household or $160,000 for couples — you will not receive any money. However, there are certain moves you can still make that would affect your adjusted gross income — and therefore your eligibility — for a $1,400 payment. It all comes down to your retirement savings. Keep in mind, this only works if you have some financial flexibility. Many Americans are counting on the $1,400 checks to keep them afloat, as individuals and families cope with challenges such as unemployment, eviction risks or food insecurity. On the flip side, others find the $1,400 payments to be an extra bonus after a year of reduced spending and uninterrupted income. For those in the latter situation, who are on the cusp of eligibility based on their income, a couple of retirement savings strategies could potentially help make a difference.
