You are entitled to a Savers Credit if you meet the qualifications. If your income is low enough you can get up to a 50% credit. If your income is too high, you could phase out entirely.
Both IRA and 401k contributions count for the credit.
Amount of the credit
Depending on your adjusted gross income reported on your Form 1040 series return, the amount of the credit is 50%, 20% or 10% of:
- contributions you make to a traditional or Roth IRA,
- elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan,
- voluntary after-tax employee contributions made to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan,
- contributions to a 501(c)(18)(D) plan, or
- contributions made to an ABLE account for which you are the designated beneficiary (beginning in 2018).
Please see this LINK for more information.
