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IRS: What is the saver’s credit and who is eligible?

The Saver’s Credit is also known as the Retirement Savings Contributions Credit.

retirement savings

This credit is an incentive from the IRS to encourage building a retirement savings.

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What is the saver’s credit?

The saver’s credit is also known as the retirement savings contributions credit. It is a nonrefundable tax credit for contributions made to a 401k, 403b, or other employer-sponsored retirement plan, Roth IRA, or ABLE account. For single filers the maximum credit is $1,000 and $2,000 for married couples filing jointly.

You must be at least 18 and can’t be a full-time student or a dependent on someone else’s tax return. If you want to apply you must have made contributions to a 401k, 403b, or other employer-sponsored retirement plan. Your adjusted gross income is also taken into account.

This credit could help you lower your tax bill or increase your refund.

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