top of page

Saving For Retirement Using the Saver’s Tax Credit

The Saver's credit can be claimed for your contributions to a 401k, 403(b), 457 plan, a Simple IRA or a SEP IRA. You can't claim your employer's contributions to these accounts, however your contributions to a traditional IRA or a Roth IRA are also eligible for the saver's credit.

Here are some key facts that you should know about this important tax credit:

Maximum Credit:

The Saver’s Credit is worth up to $2,000 for Single Filers and $4,000 for Married Filing Jointly. The credit you receive is often much less than the maximum

Formal Name:

The formal name of the Saver’s Credit is the Retirement Savings Contribution Credit. This Credit is in addition to other tax savings you get if you set aside money for retirement.

To Claim a Saver's Credit:

  • You must be age 18 or older

  • Cannot be a full-time student

  • Cannot be claimed as a dependent on someone else's tax return

  • Your retirement contribution must have been made during the tax year for which you are filing your return and must meet the income requirements

Income Limits:

You are eligible for the credit on your 2018 tax return if you are:

  • Married filing jointly with income up to $63,000

  • Head of household with income up to $47,250

  • Married filing separately or a single taxpayer with income up to $31,000

Contribution Date:

You must have contributed to a 401(k) plan or similar workplace plan by the end of the year to claim this credit. However, you can contribute to an IRA by the due date of your tax return and still have it count for 2018 - the due date for most people is April 15, 2019.

50 views0 comments


bottom of page