Most people are aware of IRAs and 401(k) accounts as tax deduction vehicles, but many people aren’t aware of the other major retirement savings tax break, the Retirement Savings Contributions Credit, or as it’s more commonly known, the “Saver’s Credit.”

The Saver’s Credit is designed to make it easier for low- to moderate-income taxpayers to save and invest for retirement. It’s like a free money reward for saving. And there are plenty of retirement account types that qualify including:

• 401(k) contributions
• Traditional or Roth IRA contributions
• SIMPLE IRA
• SEP-IRA
• 403(b) or governmental 457(B) plans

The credit rate you’ll receive is based on AGI thresholds for each tax filing status. To find out what the thresholds are, you’ll want to read The Saver’s Tax Credit: Free Money to Save For Retirement by Matthew Frankel. We found this article published on the Fox Business website — it’s worth reading if you think you may qualify.

Credit to FoxBusiness.com
The Saver’s Tax Credit: Free Money to Save For Retirement by Matthew Frankel
Matthew Frankel