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New Member

What is retirement savings contribution credit?

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New Member

What is retirement savings contribution credit?

It is a tax credit given when  you make eligible contributions to certain eligible retirement plans or to an individual retirement arrangement(IRA).

The amount of the saver's credit you can get is generally based on the contributions you make and your credit rate. For more information, refer to Publication 590-A.pdf, Contributions to Individual Retirement Arrangements (IRAs), the instructions for Form 8880.pdf, Credit for Qualified Retirement Savings Contributions, and Do I Qualify for the Retirement Savings Contributions Credit? If you're eligible for the credit, your credit rate can be as low as 10% or as high as 50%, depending on your adjusted gross income. The lower your income (or joint income, if applicable), the higher the credit rate; your credit rate also depends on your filing status. These two factors will determine the maximum credit you can take. You're not eligible for the credit if your adjusted gross income exceeds a certain amount. Dependents and full-time students are also not eligible for the credit.

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