Have you heard of the Saver’s Credit? The Saver’s Credit is an Internal Revenue Service (IRS) Retirement Savings Contributions Tax Credit. You may be able to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan. Also, you may be eligible for a credit for contributions to your Achieving a Better Life Experience (ABLE) account, if you’re the designated beneficiary.
The maximum contribution amount that may qualify for the credit is $2,000 ($4,000 if married filing jointly), making the maximum credit $1,000 ($2,000 if married filing jointly).
Continue reading to find out who is eligible for the Saver’s Credit and how to calculate your credit if you qualify.
Who is eligible for the Saver’s Credit?
A taxpayer is eligible for the credit if they’re:
- Age 18 or older,
- Not claimed as a dependent on another person’s return, and
- Not a full-time student.
Furthermore, the Saver’s Credit can be claimed by:
- Married couples filing jointly with adjusted gross incomes up to $76,500.
- Heads of household with adjusted gross incomes up to $57,375.
- Married individuals filing separately and singles with adjusted gross incomes up to $38,250.
- Qualified surviving spouse filers.
To find out if you qualify for the Retirement Savings Contributions Credit. Use the IRS’s Interactive Tax Assistant (ITA) at irs.gov/help/ita/do-i-qualify-for-the-retirement-savings-contributions-credit.
Eligible taxpayers can use the Saver’s Credit chart below to calculate their tax credit.
For more information about the Saver’s Credit, go to irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-credit-savers-credit.
Resources
Save for retirement now, get a tax credit later: Saver’s Credit can help low- and moderate-income taxpayers save more in 2025 | Internal Revenue Service
Retirement Savings Contributions Credit (Saver’s Credit) | Internal Revenue Service
