You might qualify for a $2,000 Saver's Credit as part of the retirement stimulus

In an effort to encourage people to save for retirement, the federal government has come up 

With all kinds of ways to do so, including paying you for contributing to retirement accounts.

This is in the form of the Saver's Credit, formerly known as the Retirement Savings Contribution credit

You can take advantage of the Saver's Credit by contributing to your individual retirement account 

Or employer-sponsored retirement plan. Those who save for retirement with modest income can take advantage of this program.

If you file as a married couple, you can get a credit worth $2,000, and if you file as an individual, you can get a credit worth $1,000.

Applicants must be at least 18 years old, not claim any dependents on another person's return, 

And not be students. The term "student" refers to anyone enrolled in a full-time school within five calendar 

Months of the tax year, or enrolled in an on-farm training course that was offered by a school or a state, county, or local government.

Depending on your adjusted gross income reported on your Form 1040 series return, the credit is either 50%, 20% or 10% of the following:

1. Traditional or Roth IRA contributions

2. Contributions to 401(k), 403(b), 457(b) governmental plans, SARSEPs, or SIMPLEs can be made by electing to do so

3. After-tax contributions made by employees to qualified retirement plans (such as the federal Thrift Savings Plan) or 403(b) plans

5. Making contributions to an ABLE account for which you are the designated beneficiary (beginning in 2018)

4. Contributions to a 501(c)(18)(D) plan

Contributions made as part of a rollover are not eligible for the credit. A recent distribution from

A retirement plan, an IRA, or an ABLE account may also reduce your eligibility for contributions.

Those filing single can claim a credit up to $2,000 and those filing jointly can claim a credit up to $4,000,

So the maximum credit is $1,000 for those filing single and $2,000 for those filing jointly.

Swipe Up to Read More Stories

Swipe Up