Retirement Savings Contribution Credit

The Retirement Savings Contribution Credit, often referred to as the Saver's Credit, is a tax benefit designed to encourage low- to moderate-income individuals to save for retirement. If you make eligible contributions to a retirement account, such as an IRA or 401(k), you may qualify for a credit that reduces your tax bill. The amount of the credit can be up to 50% of your contributions, depending on your income and filing status. This initiative helps make retirement savings more accessible and affordable for those who might struggle to save on their own.