ThomasM125
Expert Alumni

Retirement tax questions

You have to contribute to a retirement plan to qualify for a savers credit, but if you take a distribution from your retirement plan it will reduce the amount of your contribution that is used for the savers credit calculation. You will see the distribution and the contribution on Form 8880, so that may where you are seeing the distribution. So it may be you contributed enough to your retirement plan to qualify for a credit, even though you took a distribution.

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