NOTE: Due to the coronavirus pandemic, the IRS has extended the tax filing and payment deadline to May 17, 2021. As a result, tax filers also have until May 17, 2021 to make a contribution to an IRA for tax year 2020. Consult the IRS website for more information.
What Is the IRS Saver's Credit?
The Saver's Credit is an important 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 or in a traditional or Roth IRA, or ABLE account. Workplace plans include: 401(k)s, 403(b)s, 457(b)s, 501(c)(18)s, SIMPLE IRAs, and SARSEPs. Unfortunately, only 43 percent of workers are aware of the credit, according to the 20th 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.