How the Tax Saver’s Credit Can Help

Did you know you may be eligible for a tax credit for contributing to your IRA or employer-sponsored retirement plan?

Contributing to your retirement plan makes great financial sense. Between lowering your federal tax liability, leveraging a potential employer match and saving for the long term, you’re making a wise choice for your financial future.

Did you know you could also earn a $1,000 federal tax credit for contributing when you file your federal tax return?

The Saver’s Credit provides up to 50% of every dollar you save for retirement (up to $2,000 for married taxpayers who each save at least $2,000 and file jointly; up to $1,000 for single filers). Here’s how it works, based on your Adjusted Gross Income (AGI):

2020 Saver's Credit

Credit Rate Married Filing Jointly Head of Household All other Filers*
50% of your contribution

AGI not more than $39,000

AGI not more than $29,250

AGI not more than $19,500

20% of your contribution $39,001 - $42,500 $29,251 - $31,875 $19,501 - $21,250
10% of your contribution

$42,501 - $65,000

$31,876 - $48,750

$21,251 - $32,500

0% of your contribution more than $65,000 more than $48,750 more than $32,500

2019 Saver's Credit

Credit Rate Married Filing Jointly Head of Household All other Filers*
50% of your contribution

AGI not more than $38,500

AGI not more than $28,875

AGI not more than $19,250

20% of your contribution $38,501 – $41,500 $28,875 – $31,125 $19,251 – $20,750
10% of your contribution

$41,501 – $64,000

$31,126 – $48,000

$20,751 – $32,000

0% of your contribution more than $64,000 more than $48,000 more than $32,000

Start Saving and take some extra credit today!

  • Start now. If you’re not enrolled in a retirement savings plan, discover your options with Security Benefit.
     
  • Learn more. Visit IRS.gov, or talk to your retirement plan advisor.
     
  • Save on! If you’re already saving – congratulations! Consider saving more to maximize the Saver’s Credit in 2020.

 

 

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*Single or married filing separately

Neither Security Benefit Corporation nor its affiliates are fiduciaries. This information is general in nature and intended for use with the general public. For additional information, including any specific advice or recommendations, please visit with your financial professional.

Security Benefit, its affiliates and subsidiaries, and their respective employees and/or representatives do not provide tax, accounting or legal advice. Any statements contained herein concerning taxes are not intended as and should not be construed as tax advice, nor should they be used for the purpose of avoiding federal, state or local taxes and/or tax penalties. Please seek independent tax, accounting or legal advice.

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