What Is the IRS Saver's Credit?
The Saver's Credit is an important federal tax credit that many American workers who save for retirement may be missing out on. The IRS Saver's Credit, also known as the Retirement Savings Contributions Credit, is available to eligible taxpayers who are saving for retirement through a qualified retirement plan at work, in a traditional or Roth IRA, or in an ABLE account. Workplace plans include: 401(k)s, 403(b)s, 457(b)s, 501(c)(18)s, SIMPLE IRAs, and SARSEPs. Unfortunately, only 48 percent of workers are aware of the credit, according to the 22nd Annual Transamerica Retirement Survey of workers. Below are resources for individuals, employers, and financial advisors to learn more about this important tax credit and to share with family, friends, employees, and clients.
A new report, The Saver’s Credit: A Tax Credit That Pays to Save for Retirement, provides an overview of the Saver’s Credit, a 20-year historical trend analysis, research findings from TCRS' 22nd Annual Retirement Survey, and public policy recommendations to expand and enhance the credit. The Saver’s Credit is an important incentive for people to save for retirement. Enhancements to it would enable even more retirement savers to benefit from the credit.