Retirement Savings Contributions Credit

The Retirement Savings Contributions Credit, often called the Saver's Credit, is a tax benefit for individuals who contribute to retirement accounts like a 401(k) or IRA. It is designed to encourage low- to moderate-income earners to save for retirement. Depending on your income and filing status, you can earn a credit worth a percentage of your contributions, which directly reduces your tax bill. This means you can save money on taxes while also saving for your future. To qualify, you must meet specific income limits and contribute to an eligible retirement plan.