topic 2020 entered $7000 into an simple IRA the IRS gave me credit for $3500 because of my 401K can i get the other $3500 credited on 2021 taxes? in Retirement tax questions

2020 entered $7000 into an simple IRA the IRS gave me credit for $3500 because of my 401K can i get the other $3500 credited on 2021 taxes?

debbieandmark — Mon, 09 Mar 2026 06:17:43 GMT

Re: 2020 entered $7000 into an simple IRA the IRS gave me credit for $3500 because of my 401K can...

ColeenD3 — Wed, 09 Feb 2022 12:56:05 GMT

You are entitled to a Savers Credit if you meet the qualifications. If your income is low enough you can get up to a 50% credit. If your income is too high, you could phase out entirely.

Both IRA and 401k contributions count for the credit.

Amount of the credit

Depending on your adjusted gross income reported on your Form 1040 series return, the amount of the credit is 50%, 20% or 10% of:

contributions you make to a traditional or Roth IRA,
elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan,
voluntary after-tax employee contributions made to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan,
contributions to a 501(c)(18)(D) plan, or
contributions made to an ABLE account for which you are the designated beneficiary (beginning in 2018).

Please see this LINK for more information.

Re: 2020 entered $7000 into an simple IRA the IRS gave me credit for $3500 because of my 401K can...

SweetieJean — Wed, 09 Feb 2022 13:14:22 GMT

No, you cannot get a deduction for the other $3500 in 2021.

Re: 2020 entered $7000 into an simple IRA the IRS gave me credit for $3500 because of my 401K can i get the other $3500 credited on 2021 taxes?

SteamTrain — Wed, 09 Feb 2022 13:23:31 GMT

@debbieandmark

Actually, you may need to clarify what you are talking about.

The Saver's Credit??? Or an income deduction for making a contribution to an IRA?

I'm pretty sure that neither (savers credit nor income deduction) could be transferred to this year. What you did last year pretty much remains there for this type of situation.

IF your income deduction for contributing to an IRA in 2020 was limited because you also had a 401k at some job.....then the excess contributed to the IRA (if you didn't remove that excess) was a non-deductible contribution to the IRA, and would become a non-taxable basis in that IRA for future years when you take distributions from any IRA account.

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I certainly hope you are talking about a separate contribution you made to an actual IRA...outside of the 401k.