Did you know that you can get a match on your 401(k) contributions when you file your taxes, if you qualify? It’s called the Retirement Saver’s tax credit. You can get a credit of up to $1,000 ($2,000 if married) on your taxes just by contributing money into your company 401(k) plan.
The total credit you can receive each year, if eligible, is $1,000 if Single/Head of Household and $2,000 if Married Filing Jointly. Unlike employer match contributions, this savers credit is included in your refund each year when you file your taxes. When reviewing if you qualify, please consider the limits above are on your Adjusted Gross Income, which is after all deductions so you might be surprised that you qualify. The credit is claimed using IRS Form 8880.
If your employer offers a match and you qualify for this credit, then your 401(k) contribution gets you a matching contribution plus a credit match of up to 50% on your taxes.
How do you qualify?
- 18 or older
- Not claimed as a dependent on another person’s tax return
- Not a full-time student
- Meet the income limits listed below
Your Adjusted Gross Income (AGI) must be below the following levels:
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Cary Street Partners is the trade name used by Cary Street Partners LLC, Member FINRA/SIPC; Cary Street Partners Investment Advisory LLC and Cary Street Partners Asset Management LLC, registered investment advisers. These materials are furnished for informational purposes only. Materials have been compiled from sources believed to be reliable; however, Cary Street Partners does not guarantee the accuracy or completeness of the information presented, or any summaries, conclusions, or opinions based on such information. Such information is not intended to be complete or to constitute all the information necessary to evaluate adequately the consequences of investing in any securities, financial instruments, or strategies described herein.