Retirement Savings Contribution Credit (Saver's Credit)

The Retirement Savings Contributions Credit, commonly known as the Saver’s Credit, is a tax benefit for low- to moderate-income individuals who contribute to retirement accounts like 401(k)s or IRAs. It reduces the amount of federal income tax owed based on a percentage of your retirement contributions, encouraging saving for retirement. The credit amount depends on your income, filing status, and contribution amount, with a maximum credit you can earn. It’s designed to make saving for retirement more affordable for those with limited means, supplementing any other retirement savings benefits or deductions.