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gt97_mustang
New Member

Can I claim retirement contributions to a state retirement plan (RSA Tier for Alabama State Retirement)? The contributions are not listed on the W-2.

 
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MichaelDC
New Member

Can I claim retirement contributions to a state retirement plan (RSA Tier for Alabama State Retirement)? The contributions are not listed on the W-2.

Generally no. Your retirement contributions are pre-tax meaning they are already deducted from your taxable income (generally wages). Your money then grows tax-deferred and doesn't play a role in your taxes until you receive a distribution (hopefully in retirement). After-tax contributions are again, only taken in account when you take a distribution. The portion of your distribution that was after-tax will be considered tax-free at that time.

Either pre-tax or after-tax contributions (whether it's a pension, 401k or IRA) may qualify you for the Saver's Credit. However, your income level (AGI) typically needs to be relatively low.

You may be able to get a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan.

Who's eligible for the credit?

You're eligible for the credit if you're:

  1. Age 18 or older;
  2. Not a full-time student; and
  3. Not claimed as a dependent on another person’s return. 

Amount of the credit

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).

In 2017, the maximum adjusted gross income for Saver's Credit eligibility is $61,500 for a married couple filing jointly, $46,125 for a head of household, and $30,750 for all other taxpayers. The maximum credit you can claim phases out as your income increases

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