Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Jun 4, 2019 4:56:43 PM

Do I still qualify for the retirement savings credit if I pay into a Pension Plan? I'm forced to pay 13% of my income into it.

0 1 428
1 Replies
Intuit Alumni
Jun 4, 2019 4:56:44 PM

Yes, that and IRAs can potentially qualify you.

Retirement Savings Contributions Credit (Saver’s Credit)

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 $62,000 for a married couple filing jointly, $46,500 for a head of household, and $31,000 for all other taxpayers. The maximum credit you can claim phases out as your income increases.