to claim
the retirement savings contribution credit (saver’s credit).
You are
eligible to claim the credit on your return if the following applies:
- Age 18 or older;
- Not a
full-time student; and
- Not claimed as
a dependent on another person’s return.
The credit is based on
contributions to an employer retirement plan like a 401k or contributions to an
IRA (individual retirement account) you hold through a bank.
The amount of the credit is 50%,
20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if
married filing jointly), depending on your adjusted gross income (reported on
your Form 1040 or 1040A). Use the chart below to calculate your credit.
The IRS has a calculation chart that can
be found by clicking here
Contributions to any of the following
retirement accounts will qualify for the credit.
- traditional or Roth IRA;
- your 401(k),
- SIMPLE IRA,
- SARSEP,
- 403(b),
- 501(c)(18) or
governmental
- 457(b) plan;
- and your
voluntary after-tax employee contributions to your qualified retirement
and 403(b) plans.
