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All glossary terms

Glossary term

Saver's Credit (Retirement Savings Contributions Credit)

A nonrefundable credit for lower-income workers who contribute to retirement accounts.

Related terms

1

Jurisdictions

us

Definition

Section 25B provides a credit of up to 50 percent (depending on AGI) of the first $2,000 of qualified retirement contributions. The credit is fully phased out above moderate AGI thresholds.

Examples

  • A taxpayer with AGI under the lower threshold contributing $2,000 to an IRA may receive a $1,000 nonrefundable credit.

Translations

EScrédito por ahorros
ZH储户税收抵免
DESparer-Steuergutschrift
FRcrédit de l'épargnant
JA貯蓄者税額控除

Citations

26 U.S.C. · 25B

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This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.