With tax season right around the corner it's always a good idea to be on the lookout for ways to save some money. If you make a contribution to a retirement plan you might just be eligible for a Retirement Savings Tax Credit. If you make a contribution to a Simple IRA, a 401(k), a 403(b), a 457, or numerous other types of retirement savings accounts, you are already generally eligible for a tax deduction. But you may also be eligible for a retirement savings contribution tax credit as well.
You're eligible for the Retirement Savings Tax Credit if you are:
- Age 18 or older;
- Not a full-time student;
- Not claimed as a dependent on another person’s return; and
- Have adjusted gross income below $32,000.
If this sounds like it applies to you here are some next steps we recommend taking:
- Utilize the IRS’ online Interview tool to determine if you are eligible for the credit.
- Ask your accountant or tax return preparer if you are eligible for this credit.
- Check out additional information at the IRS.gov website.
If you have any further questions regarding Tax Credits or Retirement Savings, feel free to reach out to us. We’d be more than happy to answer your questions.
For more tips and information regarding retirement plans, contact us.
