Retirement Savings Contributions Credit (Saver’s Credit)

You may be able to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan.

Who’s eligible for the credit?

You’re eligible for the credit if you’re:

  1. Age 18 or older;
  2. Not a full-time student; and
  3. Not claimed as a dependent on another person’s return.

Amount of the credit

The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if married filing jointly), depending on your adjusted gross income (reported on your Form 1040 or 1040A). Use the chart below to calculate your credit.

2013 Saver’s Credit – For 2013 Returns

Credit Rate

Married Filing Jointly

Head of Household

All Other Filers*

50% of your contribution

AGI not more than $35,500

AGI not more than $26,625

AGI not more than $17,750

20% of your contribution

$35,501 – $38,500

$26,626 – $28,875

$17,751 – $19,250

10% of your contribution

$38,501-$59,000

$28,876 – $44,250

$19,251 – $29,500

0% of your contribution

more than $59,000

more than $44,250

more than $29,500

 

2014 Saver’s Credit – For 2014 Planning/Estimate Purposes

Credit Rate

Married Filing Jointly

Head of Household

All Other Filers*

50% of your contribution

AGI not more than $36,000

AGI not more than $27,000

AGI not more than $18,000

20% of your contribution

$36,001 – $39,000

$27,001 – $29,250

$18,001 – $19,500

10% of your contribution

$39,001-$60,000

$29,251 – $45,000

$19,501 – $30,000

0% of your contribution

more than $60,000

more than $45,000

more than $30,000

*Single, married filing separately, or qualifying widow(er)

Retirement savings eligible for the credit

The Saver’s Credit can be taken for your contributions to a traditional or Roth IRA; your 401(k), SIMPLE IRA, SARSEP, 403(b), 501(c)(18) or governmental 457(b) plan; and your voluntary after-tax employee contributions to your qualified retirement and 403(b) plans.

Rollover contributions are not eligible for the Saver’s Credit. Also, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA.

Example: Jill, who works at a retail store, is married and earned $30,000 in 2013. Jill’s husband was unemployed in 2013 and didn’t have any earnings. Jill contributed $1,000 to her IRA in 2013. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $29,000. Jill may claim a 50% credit, $500, for her $1,000 IRA contribution.

IRS Circular 230 Disclosure

Pursuant to IRS Regulations, we inform you that any tax advice provided or implied on this post (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed on the taxpayer.

While the information contained in this post is believed to be reliable, we cannot guarantee its accuracy or completeness.