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Retirement Topics - Retirement Savings Contributions Credit (Saver’s Credit)

You may be able to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan.

Who's eligible for the credit?

You're eligible for the credit if you're:

  1. Age 18 or older;
  2. Not a full-time student; and
  3. Not claimed as a dependent on another person’s return.

See the instructions for Form 8880, Credit for Qualified Retirement Savings Contributions, for the definition of a full-time student.

Amount of the credit

The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if married filing jointly), depending on your adjusted gross income (reported on your Form 1040 or 1040A). Use the chart below to calculate your credit.

2013 Saver's Credit
Credit Rate Married Filing Jointly Head of Household All Other Filers*
50% of your contribution AGI not more than $35,500 AGI not more than $26,625 AGI not more than $17,750
20% of your contribution $35,501 - $38,500 $26,626 - $28,875 $17,751 - $19,250
10% of your contribution $38,501-$59,000 $28,876 - $44,250 $19,251 - $29,500
0% of your contribution more than $59,000 more than $44,250 more than $29,500

*Single, married filing separately, or qualifying widow(er)

2014 Saver's Credit
Credit Rate Married Filing Jointly Head of Household All Other Filers*
50% of your contribution AGI not more than $36,000 AGI not more than $27,000 AGI not more than $18,000
20% of your contribution $36,001 - $39,000 $27,001 - $29,250 $18,001 - $19,500
10% of your contribution $39,001-$60,000 $29,251 - $45,000 $19,501 - $30,000
0% of your contribution more than $60,000 more than $45,000 more than $30,000

Retirement savings eligible for the credit

The Saver’s Credit can be taken for your contributions to a traditional or Roth IRA; your 401(k), SIMPLE IRA, SARSEP, 403(b), 501(c)(18) or governmental 457(b) plan; and your voluntary after-tax employee contributions to your qualified retirement and 403(b) plans.

Rollover contributions aren’t eligible for the Saver’s Credit. Also, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA.

Example: Jill, who works at a retail store, is married and earned $30,000 in 2013. Jill’s husband was unemployed in 2013 and didn’t have any earnings. Jill contributed $1,000 to her IRA in 2013. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $29,000. Jill may claim a 50% credit, $500, for her $1,000 IRA contribution.

Additional resources

Publication 590, Individual Retirement Arrangements (IRAs)
Form 8880, Credit for Qualified Retirement Savings Contributions

Page Last Reviewed or Updated: 30-Apr-2014