Crush Your Tax Bill with the Savers Credit!
Hey all, Did you know you can get a tax credit just for saving for retirement? It’s called the Savers Credit, and it’s an excellent way to reduce your tax bill. What’s the Deal? The Savers Credit gives you a tax break based on your contributions to retirement accounts like a 401(k) or IRA. Credit Amount: Depending on your income, you can get a credit worth 10%, 20%, or even 50% of your contributions, up to $2,000 for individuals and $4,000 for couples. Income Limits: For 2024, to get the highest credit (50%), your income needs to be below: - $21,750 for singles - $32,625 for heads of households - $43,500 for married couples Example: Contribute $2,000 to your IRA, and if you qualify for the 50% credit, you’ll get a $1,000 tax credit. That’s a direct reduction of your tax bill. Fun Fact: This credit is in addition to other tax benefits for retirement contributions. Who’s taking advantage of the Savers Credit? Let’s share our success stories!