How do I know if I qualify for the Savers Tax Credit using my 401(k)?

[william-b-somers]

On my W2, there are no amounts shown in Box 12. However, with the company I work for, I have an option to use money for health and welfare benefits, or put it into a 401(k). I elected to put the money in a 401(k). Does this qualify for the Savers Tax Credit?

[MichaelDC · Accepted solution]

Yes. 401k contributions are eligible contributions for the Saver's Tax Credit. However, if you did contribute to the 401k, you would have an amount in Box 12 of your W-2 with a Code D. You may want to clarify this with your employer or payroll company.

Only contributions to retirement plans and IRA's qualify.

If you have additional questions or details regarding this, please feel free to post in the comments for further clarification.

[william-b-somers]

Thank you MichaelDC. Sounds like I will have to ask someone at the company if it qualifies. If it does, how would I edit my TurboTax to include it?

[MichaelDC]

You'll get a "corrected" W-2 that you'll use to update and correct the one presently on your TurboTax return. 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. So, the credit may not help you if your income is more than that. Thanks and Good Luck!