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  • Writer's pictureMark Witkowski

Employees! Get Your Saver's Credit

What is the Saver's Credit?

The Saver's Credit is a tax credit that low- and moderate-income individuals may claim for qualified contributions to eligible retirement accounts. It is a nonrefundable credit, meaning it can only reduce taxes, even to a point where taxes may be reduced to $0. You may still receive a tax refund if you had taxes withheld greater than your tax liability at year end, but the Saver's Credit itself cannot provide a refund.

The amount of the Saver's Credit depends on how much you contribute and your income level, as represented by your adjusted gross income (AGI) and filing status. AGI is your gross income minus adjustments the IRS allows that decrease your taxable gross income.

Depending on your AGI, you could receive a tax credit of 10%, 20%, or 50% of the first $2,000 ($4,000 for joint filers) that you contribute to eligible retirement accounts.

2024 Saver's Credit eligibility

Saver's Credit rate

Married filing jointly

Head of household

Single filers

50% of eligible contributions

AGI of no more than $46,000

AGI of no more than $34,500

AGI of no more than $23,000

20% of eligible contributions

$46,001 - $50,000

$34,501 - $37,500

$23,001 - $25,000

10% of eligible contributions

$50,001 - $76,500

$37,501 - $57,375

$25,001 - $38,250

0% of eligible contributions

More than $76,500

More than $57,375

More than $38,250


How much do you have to contribute to get the Saver's Credit?

There is no minimum contribution amount to be eligible for the Saver's Credit. So even saving just a small amount in eligible retirement accounts could result in tax savings.

There is, however, a maximum contribution amount that you can count toward the Saver's Credit: $2,000 for single filers and $4,000 for joint filers. That works out to a nonrefundable tax credit of $1,000 for single filers and $2,000 for those filing jointly who can apply 50% of their contributions. Those who can apply 20% may see a nondeductible credit of up to $400 ($800 for joint), and those who can apply 10% may get a credit of up to $200 ($400 for joint).

Who is eligible for the Saver's Credit?

To be eligible to claim the credit you must qualify by your Adjusted Gross Income (AGI) as detailed above as well as meet the following conditions:

  • You must be 18 or older.

  • You must not be claimed as a dependent on another person's tax return.

  • You are not a student, meaning you haven't taken classes full time or on-farm training courses full time for any part of 5 calendar months of the tax year.

You also must contribute to eligible tax-advantaged retirement accounts, including traditional and Roth individual retirement accounts (IRAs), 401(k)s, 403(b)s, 457(b)s, SARSEP and SIMPLE plans, federal Thrift Savings Plans, and ABLE accounts for which you are the beneficiary.

How to claim the Saver's Credit

To claim the Saver's Credit, make sure to contribute to an eligible retirement account by the contribution deadline for the tax year. Those saving in a workplace plan like a 401(k) usually have until the end of the calendar year. Retirement savers using IRAs, meanwhile, can make eligible contributions for the Saver's Credit in the prior tax year until the annual tax filing deadline. Typically, this is April 15 of the following year.

You can then calculate and claim the amount of the Saver's Credit you are eligible for by completing Form 8880, "Credit for Qualified Retirement Savings Contributions," when you file your tax return. If you're not sure whether you qualify or how to complete this form, check with a tax professional.


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