Retirement Savings Contributions Credit (Saver’s Tax Credit)
Employers and plan sponsors can give their low- and moderate-wage workers some good news by informing them of the Saver’s Credit. This federal income tax credit was made permanent in the Pension Protection Act of 2006. To be eligible, a person must: be 18 years of age or older not be a full-time student not be claimed as a dependent on someone else’s return make contributions to a qualified IRA, 401(k) or other eligible retirement plan meet certain financial criteria, as described below Depending on adjusted gross income, a participant may receive a tax credit equal to 10, 20 or 50%...
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