Legal Matters & Taxes

What Is Saver’s Credit and How Can it Raise Your Tax Refund?

“The retirement savings contribution credit — the “saver’s credit” for short — is a tax credit worth up to $1,000 ($2,000 if married filing jointly) for mid- and low-income taxpayers who contribute to a retirement account.

You’re eligible for the saver’s credit if you are 18 or older, not a full-time student and not claimed as a dependent on another person’s tax return.

The value of the saver’s credit is calculated based on your contributions to a traditional or Roth IRA, 401(k), SIMPLE IRA, ABLE account, SARSEP, 403(b) or 457(b) plan. You may [get a Tax Credit of] 50%, 20% or 10% of the maximum contribution amount, depending on your filing status and adjusted gross income.”



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What Is Saver's Credit and How Can it Raise Your Tax Refund?

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