Definition
The Saver's Credit is a credit for lower-income taxpayers who contribute to retirement accounts.
How It Works
It provides a credit equal to a percentage of retirement contributions, with the percentage decreasing as income rises and disappearing above modest thresholds.
Example
A lower-income worker contributing to an IRA receives an additional credit on top of the usual tax benefit.
Who It Applies To
Lower-income taxpayers saving for retirement.
Watch-Outs
Income limits exclude high earners. Included for completeness.
