Get Retirement Savings From The IRS

The IRS will give you up to $2,000 toward retirement plan contributions if you qualify for the Saver’s Credit. The best part is that you can contribute all the way up until April 15, 2018 for the 2017 tax year – so you can calculate your credit before you even contribute! Qualifying if fairly simple and is primarily based on income level. The credit amount is calculated on a contribution maximum of $2,000 if Single and $4,000 if Married.

  • Be over 18, not a full-time student and not claimed as a dependent on someone else’s return.

  • For Single filers, get back a 50% credit if your adjusted gross income (AGI) is less than $18,500, 20% if between $18,501 and $20,000, 10% if between $20,001 and $30,000 – above that income, the credit doesn’t apply.

  • For Married filers, get a 50% tax credit if your AGI is below $37,000, 20% if between $37,001 and $40,000, 10% if from $40,001 and $60,000 – above that income, the credit does not apply.

You can take this credit for contributions made to an employer sponsored retirement plan as well – if your employer matches your contribution that means even more free money! Make sure you review your retirement planning on a regular basis and take advantage of all the credits and matching contributions that you can – you’ll thank yourself later.

Leave a Reply

Your email address will not be published. Required fields are marked *