Retirement Savings Contributions Credit
Find out if you are eligible to reduce your tax bill
The Retirement Savings Contribution Credit – the “saver’s credit” for short – is an underutilized tax break that many eligible individuals fail to claim. Despite its potential to significantly reduce tax bills for low- to moderate-income earners, a notable portion of those who qualify do not take advantage of it. This credit is designed to encourage retirement savings by offering a tax incentive for contributions to eligible retirement accounts such as IRAs and 401(k)s.
This one-page handout provides information about the saver’s credit and the breakdown for 2023 and 2024.