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posted May 31, 2019 11:37:26 PM

Should i be taking the Retirement Savings Contribution Credit? I don't want to get taxed for my retirement when I begin to Draw from it. Is taking a credit now harmful?

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Level 9
May 31, 2019 11:37:28 PM

Yes if you qualify for the credit you should take it.  It does not affect your retirement plans or how they are taxed, it is separate and gives you credit for your taxes now. 

The credit for qualified retirement savings contribution, helps low and middle-income taxpayers save money for retirement.  Based on your income and filing status, you can claim a credit on your return for part of the money you placed into a qualified retirement plan.

1 Replies
Level 9
May 31, 2019 11:37:28 PM

Yes if you qualify for the credit you should take it.  It does not affect your retirement plans or how they are taxed, it is separate and gives you credit for your taxes now. 

The credit for qualified retirement savings contribution, helps low and middle-income taxpayers save money for retirement.  Based on your income and filing status, you can claim a credit on your return for part of the money you placed into a qualified retirement plan.