Enhance Your Clients' Retirement Savings with the Saver's Credit
Date:
Dear Colleague,
At the Social Security Administration, we strive to provide you with valuable information to assist your clients in securing a better financial future. The Saver's Credit makes saving for retirement easier and helps your clients achieve their financial goals.
The Saver's Credit, officially known as the Retirement Savings Contributions Credit, encourages people to save for their retirement. This credit allows your clients to receive a tax credit for making eligible contributions to retirement savings plans. By helping your clients take advantage of this credit, you not only assist them in reducing their tax liability, but also guide them towards a more secure retirement.
Here are some key points your clients should consider about the Saver's Credit:
- Eligibility - People meeting certain income and filing-status requirements may qualify. This credit applies to contributions to a 401(k), 403(b) or similar employer-sponsored retirement plan, a traditional or Roth IRA, or an Achieving a Better Life Experience (ABLE) account for which your clients are the designated beneficiary. The Internal Revenue Service (IRS) online questionnaire can help your clients determine if they qualify.
- Credit Amount - The credit amount can be up to 50%, 20%, or 10% of your clients' eligible contributions, depending on their adjusted gross income.
- How to Claim - Your clients must file IRS Form 8880 with their return to claim the credit, whether the return is prepared manually or electronically.
For more information, please read IRS publication, Tax Highlights for Persons with Disabilities and visit their Retirement Savings Contributions Credit webpage.
Please share this important information with your clients. Thank you for your continued support.
Sincerely,
Dawn Bystry
Deputy Associate Commissioner
Office of Strategic and Digital Communications
@SSAOutreach
oea.net.post@ssa.gov