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:
- Age 18 or older;
- Not a full-time student; and
- 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
