This topic explained the qualified retirement savings contributions credit. Taxpayers may be eligible to claim the credit if they (or their spouses if filing jointly) made eligible contributions which include:

• Traditional or Roth IRA,
  
  
• Salary reduction (elective deferrals, including amounts designated as after-tax Roth contributions) to:
  
  
  • A 401(k) plan (including a SIMPLE 401(k)),
    
    
  • A section 403(b) annuity,
    
    
  • An eligible deferred compensation plan of a state or local government (a governmental 457 plan),
    
    
  • A SIMPLE IRA plan, or
    
    
  • A salary reduction SEP, and
    
    
• Section 501(c)(18) plan.

Eligible contributions also include voluntary after-tax employee contributions to a tax-qualified retirement plan or section 403(b) annuity. For purposes of the credit, an employee contribution will be voluntary as long as it is not required as a condition of employment.

To figure the retirement savings credit, taxpayers must complete Form 8880, Credit for Qualified Retirement Savings Contributions.