Find out if you can receive this IRS credit. Although it is commonly known as Saver’s Credit, it is the Retirement Savings Contributions Credit. The thing is you may be able to benefit from a tax credit for making eligible contributions to your employer-sponsored retirement plan or IRA.
What is more, some Americans may also qualify for ABLE. It stands for Achieving a Better Life Experience and it could be really advantageous if you are the designated recipient.
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Saver’s Credit Eligibility according to the IRS
In order to receive Saver’s Credit from the IRS you must be at least 18 years old. Therefore, if you are not 18 years old yet, you will not be able to get it. But this is not the only group of Americans who are not eligible.
Bear in mind that you will only be eligible if you are not a student. So, if you are 18 years old or older, and you are not a student, you should check you meet the third requirement.
For your information, you will be eligible for Saver’s Credit if you have not been claimed as a dependent on another’s person tax return. Thus, these are all the requirements the IRS set.
IRS unveils the amount of Saver’s Credit
According to the Internal Revenue Service, the amount of the Saver’s Credit depends on your adjusted gross income that you have reported on IRS Form 1040 series return.
As a matter of fact, the amount of the credit is 50 percent, 20 percent or 10 percent of the contributions you make to a traditional Roth IRA retirement savings account.
If you do not have a Roth IRA account, you may have 401(k). In that case, it will be 50%, 20%, or 10% of elective salary deferral contributions to a 401(k), 403, (b)governmental 457(b), SARSEP, or SIMPLE plan. Other options may apply to different accounts like ABLE. It is time to make contributions not to miss out on Saver’s Credit from the IRS.