Saver's Credit (Retirement Savings Contributions Credit)

About This Program

The Saver's Credit (officially the Retirement Savings Contributions Credit) provides a federal tax credit of 10%, 20%, or 50% of the amount you contribute to a qualifying retirement account — 401(k), 403(b), 457(b), IRA, SIMPLE IRA, or SARSEP — up to a contribution base of $2,000 per individual ($4,000 married filing jointly). The maximum credit is $1,000 for single filers or $2,000 for married filing jointly. The credit rate is highest for the lowest earners: 50% for adjusted gross income (AGI) at or below $23,000 (single) or $46,000 (married), dropping to 20% and then 10% at higher income levels. The credit phases out completely above $38,250 (single) or $76,500 (married) in 2024. Importantly, the Saver's Credit is nonrefundable — it can reduce your tax liability to zero but cannot result in a refund if the credit exceeds your tax owed. If you owe little or no federal income tax, you will receive limited benefit from this credit. Workers who owe more in taxes and who can afford to save even a modest amount benefit most. The Saver's Credit cannot be claimed if you are a full-time student or if you are claimed as a dependent on someone else's return. To claim it, file Form 8880 with your federal tax return. Free tax preparation through VITA or AARP Tax-Aide will identify the credit automatically if you qualify.

Eligibility Requirements

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