Did you know many people can get a double tax benefit when they contribute to a retirement plan?
What Is the Saver’s Credit?
The Saver’s Credit is a non-refundable tax credit that may be applied up to the first $2,000 of voluntary contributions an eligible worker makes to a 401k, 403b or similar employer-sponsored retirement plan, or a traditional or Roth IRA.
The maximum credit is $1,000 for single filers or individuals and $2,000 for married couples filing jointly. “The Saver’s Credit is a tax credit in addition to the benefit of tax-advantaged savings when contributing to a 401k, 403b or IRA,” Collinson explained. “Many eligible retirement savers may be confusing these two incentives because the notion of a double tax benefit seems too good to be jfair okomonom:ko’