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.
What is Saver’s Credit?
Retirement Saver’s Credit is a tax credit for workers who contribute to a retirement plan.
With this savings credit, you can get a credit of up to $1,000 if single or the head of household and $2,000 if married filing jointly on your taxes, just by contributing money into your company 401(k) plan.
Unlike employer match contributions, this Saver’s Credit is included in your refund each year when you file your taxes.
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.
Who is eligible for Saver’s Credit?
You qualify for Saver’s Credit if you are 18 or older, not claimed as a dependent on another person’s tax return, and not a student. You also must meet the income limits listed below.
Your Adjusted Gross Income (AGI) must be below the following levels:
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.
Take credit for your retirement!
Interested in learning more about retirement planning? Contact our retirement services professionals today so they help you make smart choices about retirement savings.
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.