What Is the Saver's Credit?

The Saver's Credit (officially the Retirement Savings Contributions Credit) rewards lower- and middle-income individuals for contributing to retirement accounts by giving them an additional tax credit on top of any deduction they might already receive. The credit is worth 10%, 20%, or 50% of up to $2,000 in contributions ($4,000 for married couples filing jointly), depending on your adjusted gross income — lower-income households receive the higher credit rates. For 2024, the credit is available to single filers with AGI up to $38,250 and married filers up to $76,500. Unlike the Earned Income Credit, the Saver's Credit is not refundable — it can reduce your tax bill to zero but won't generate a refund if it exceeds your tax liability. Contributions to traditional or Roth IRAs, 401(k)s, 403(b)s, SIMPLE IRAs, SEP-IRAs, and several other plans all qualify. The credit can be claimed alongside any deduction for the same retirement contribution, making contributing to a retirement account potentially very tax-efficient for eligible households.