Saver’s Credit to be Replaced with Federal Saver’s Match
The nonrefundable Saver’s Credit for some IRA and retirement plan contributions will be superseded by a Federal Saver’s Match contribution that is deposited into an IRA or retirement plan. The match is equal to 50% of the amount deferred by the participant, up to $2,000 per year. This means an extra $1,000 for every $2,000 contributed annually. The $2,000 may be reduced by certain distributions to the participant completed within the past 3 years. Ineligible participants include: tax filers under the age of 18, full time students, dependents, and nonresident aliens. The match is only available for participants whose Modified Adjusted Gross Income (MAGI) is as follows:
|Filing Status||50% Match if MAGI is below:||Phase-Out of 50% Match if MAGI is between:||0% Match if MAGI at or above:|
|Joint filers||$41,000||$41,000 – $71,000||$71,000|
|Head of Household||$30,750||$30,750 – $53,250||$53,250|
|Single/Separate filers||$20,500||$20,500 – $35,500||$35,500|
Applicable plans: 401(k), 403(b), governmental 457(b) plans, SIMPLE IRA, SARSEP and traditional IRAs.