Depending on your adjusted gross income reported on your Form 1040 series return, the amount of the credit is 50%, 20% or 10% of:
- contributions you make to a traditional or Roth IRA,
- elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan,
- voluntary after-tax employee contributions made to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan,
- contributions to a 501(c)(18)(D) plan, or
- contributions made to an ABLE account for which you are the designated beneficiary (beginning in 2018).
Rollover contributions do not qualify for the credit. Also, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA, or from an ABLE account.
The maximum contribution amount that may qualify for the credit is $2,000 ($4,000 if married filing jointly), making the maximum credit $1,000 ($2,000 if married filing jointly). Use the chart below to calculate your credit.
Example: Jill, who works at a retail store, is married and earned $41,000 in 2021. Jill’s spouse was unemployed in 2021 and didn’t have any earnings. Jill contributed $2,000 to her IRA for 2021. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $39,000. Jill may claim a 50% credit of $1,000 for her $2,000 IRA contribution on her 2021 tax return.
2022 Saver's Credit
| Credit Rate | Married Filing Jointly | Head of Household | All Other Filers* |
|---|---|---|---|
| 50% of your contribution | AGI not more than $41,000 | AGI not more than $30,750 | AGI not more than $20,500 |
| 20% of your contribution | $41,001- $44,000 | $30,751 - $33,000 | $20,501 - $22,000 |
| 10% of your contribution | $44,001 - $68,000 | $33,001 - $51,000 | $22,001 - $34,000 |
| 0% of your contribution | more than $68,000 | more than $51,000 | more than $34,000 |
*Single, married filing separately, or qualifying widow(er)
2021 Saver's Credit
| Credit Rate | Married Filing Jointly | Head of Household | All Other Filers* |
|---|---|---|---|
| 50% of your contribution | AGI not more than $39,500 | AGI not more than $29,625 | AGI not more than $19,750 |
| 20% of your contribution | $39,501 - $43,000 | $29,626 - $32,250 | $19,751 - $21,500 |
| 10% of your contribution | $43,001 - $66,000 | $32,251 - $49,500 | $21,501 - $33,000 |
| 0% of your contribution | more than $66,000 | more than $49,500 | more than $33,000 |
*Single, married filing separately, or qualifying widow(er)
2020 Saver's Credit
| Credit Rate | Married Filing Jointly | Head of Household | All Other Filers* |
|---|---|---|---|
| 50% of your contribution | AGI not more than $39,000 | AGI not more than $29,250 | AGI not more than $19,500 |
| 20% of your contribution | $39,001 - $42,500 | $29,251 - $31,875 | $19,501 - $21,250 |
| 10% of your contribution | $42,501 - $65,000 | $31,876 - $48,750 | $21,251 - $32,500 |
| 0% of your contribution | more than $65,000 | more than $48,750 | more than $32,500 |
*Single, married filing separately, or qualifying widow(er)
2019 Saver's Credit
| Credit Rate | Married Filing Jointly | Head of Household | All Other Filers* |
|---|---|---|---|
| 50% of your contribution | AGI not more than $38,500 | AGI not more than $28,875 | AGI not more than $19,250 |
| 20% of your contribution | $38,501 - $41,500 | $28,876 - $31,125 | $19,251 - $20,750 |
| 10% of your contribution | $41,501 - $64,000 | $31,126 - $48,000 | $20,751 - $32,000 |
| 0% of your contribution | more than $64,000 | more than $48,000 | more than $32,000 |
*Single, married filing separately, or qualifying widow(er)
