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Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

I work for the state of Florida and our retirement plan is a 401A. Does this qualify for the Retirement Savings and Contribution Credit? If no, where do I enter this information on my return?
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New Member

Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

The IRS permits the credit for contributions to the following plans:

  • Elective deferrals to a 401(k) or 403(b) plan (including designated
  • Roth contributions under section 402A), or to a governmental
  • 457(b), SEP, or SIMPLE plan.
  • Voluntary employee contributions to a qualified retirement plan as defined in section 4974(c) (including the federal Thrift Savings Plan).
  • Contributions to a 501(c)(18)(D) plan

Section 401(a) plans are included under section 4974(c), so the answer is yes.

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New Member

Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

The IRS permits the credit for contributions to the following plans:

  • Elective deferrals to a 401(k) or 403(b) plan (including designated
  • Roth contributions under section 402A), or to a governmental
  • 457(b), SEP, or SIMPLE plan.
  • Voluntary employee contributions to a qualified retirement plan as defined in section 4974(c) (including the federal Thrift Savings Plan).
  • Contributions to a 501(c)(18)(D) plan

Section 401(a) plans are included under section 4974(c), so the answer is yes.

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New Member

Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

The 401(A) is mandatory in my case, so no, it doesn't qualify for the credit. TT is really bad at explaining this.
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New Member

Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

I agree. I've been looking for an answer to this for weeks! The IRS was no help either. You would think they'd have information about this since it effects state employees, like teachers. So if it's mandatory you don't qualify. It must be voluntary and you have to make under a certain amount, which I did last year and the year before when I was a substitute teacher. I feel like our tax system has really screwed me in recent years. Don't even get me started on Obamacare.
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New Member

Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

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New Member

Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

I agree with you on this. So i would like to ask you this question. I'm receiving benefits and also work, my agi is 38,000. I want to do an IRA and claim the savers credit. Turbo tax will not allow me because of the pension distribution. Do you know how I can do this and if I'm right in thinking that this is legal?

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Expert Alumni

Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

According to this IRS website, if you file single, you will not be able to claim a saver's credit if your income is over $19,500.  Head of Household $29,250. Turbo Tax cannot advise you how to circumvent the tax code or suggest a tax strategy for you in this particular instance.

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New Member

Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

my husband and I make 38000 total income, that includes a 401a pension(DB). We wish to also do an ira and take the savers credit. A web site by Ed Slot and Company says I can do this, but TT won't let me. I was thinking of just doing it by mail and I was wondering if anyone out there can tell what they think? Any contributions made to it were 15 years ago and it was mandatory. We were required to start it in 2019. If anyone has any information concerning this it would be most helpful? Thank you. We're in our early 60, so age and income are not an issue.

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New Member

Does a 401A plan qualify for the Retirement Savings and Contribution Credit?

I just found the answer to my question in Sec 25(2 a). I also think that I just got TT to do the savers credit. The question now is---Do I send it by mail with a copy of Sec 25 for proof or just e-file? Will probably just e-file and wait til I get a letter from IRS. My 401(a) was mandatory, so taking the savers credit  should definitely be OK even though we received pension payments. Thanks