SAVER’S CREDIT
01.Core Concepts
• A nonrefundable credit for contributions or deferrals to retirement savings plans • The credit = applicable percentage (10%, 20%, 50%) times the amount of qualified retirement savings contri butions (up to $1,000 if single and $2,000 if MFJ) • For 2025: • Joint returns with AGI of $79,000 or less, • Head of household returns of $59,250 or less, and • Single returns of $39,500 or less are eligible for the credit. • Eligible contributions: • IRAs – Roth and traditional • Elective deferrals to 401(k), SIMPLE, SARSEP, 403(b), and governmental 457(b) plan • The saver’s credit can be taken for contributions to an ABLE account effective 2018.