Saver's Credit

Saver’s Credit, also known as the Retirement Savings Contributions Credit, is a tax benefit designed to encourage low- to moderate-income individuals to save for retirement. If you contribute to a retirement account like a 401(k) or IRA, you may qualify for a percentage of your contribution to be directly credited against your tax bill, up to a certain limit. The amount of the credit depends on your income and filing status, and it can reduce your taxes dollar-for-dollar, making saving for retirement more affordable.