Retirement News for Employers - Winter 2011 Edition - Retirement Savings Contributions Credit
Looking for a way to save money on your 2010 taxes? You might qualify for the Retirement Savings Contributions Credit (also known as the Saver’s Credit) if you:
- meet income and eligibility requirements, and
- contribute to a traditional or Roth IRA, a 401(k), 403(b), governmental 457, SARSEP or SIMPLE IRA plan.
The credit is equal to 50%, 20% or 10% of your contributions up to $2,000 ($4,000 if married filing jointly) depending on your adjusted gross income reported on your 2010 Form 1040 or 1040A. Use the chart below to calculate your credit.
|
Credit Rate |
Married Filing Jointly |
Head of Household |
All Other Filers* |
|
50% of your contribution |
AGI not more than $33,500 |
AGI not more than $25,125 |
AGI not more than $16,750 |
|
20% of your contribution |
$33,501 - $36,000 |
$25,126 - $27,000 |
$16,751 - $18,000 |
|
10% of your contribution |
$36,001 - $55,500 |
$27,001 - $41,625 |
$18,001 - $27,750 |
|
0% of your contribution |
more than $55,500 |
more than $41,625 |
more than $27,750 |
*single, married filing separately or qualifying widow(er).
You must use Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the Saver’s Credit.
See Publication 4703, Retirement Savings Contributions Credit, and Publication 590, Individual Retirement Arrangements (IRAs), for more information.
