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tomcon16
New Member

Deductions

What contributions are allowed for the "Credit for Retirement Savings Contributions'? We contribute to a State Optional Retirement plan each pay period at a standard rate of 9%.

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2 Replies
MayaD
Employee Tax Expert

Deductions

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).

For more information, check: Retirement Savings Contributions Credit (Saver’s Credit)

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Deductions

Your state's ORP likely qualifies.  Note that Turbotax will claim this for you automatically if you qualify.  Your workplace contributions are reported on your W-2 in box 12, and as long as you enter your w-2 correctly, Turbotax will recognize those contributions and apply the credit if allowed. 

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