Comments on: Tax Credit for Retirement Savings Contributions

By: vh

vh — Fri, 14 Dec 2007 11:55:58 +0000

How would a person who earns $25,000 or less manage to put aside $2,000 and still be able to eat? It’s all very nice to get some sort of tax kickback, but you still have to put food on the table before April rolls around.

By: dave

dave — Thu, 01 Mar 2007 03:43:25 +0000

Here it is:
You cannot take this credit if either of the following applies:

- The amount on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 36 is more than $25,000 ($37,500
if head of household; $50,000 if married filing jointly).

- The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1989, (b) is
claimed as a dependent on someone else’s 2006 tax return, or (c) was a student (see instructions).

By: dave

dave — Thu, 01 Mar 2007 03:36:40 +0000

Don’t forget to check the details. i got excited about this a few weeks ago until i checked out some of the details. i believe you can not be claimed as a dependent on someone else’s return and you cant be a full time student, or something like that.

By: Tim

Tim — Wed, 28 Feb 2007 19:19:04 +0000

To clarify, there is a Saver’s Tax Credit that can apply toward a RIRA. Tax Deduction is for TIRA. Two separate things.

Saver’s Tax Credit: 401k, 403b, SIMPLE, SEP, govt 457 plan, TIRA, and RIRA.
-10-50% on up to $2k per person with AGI up to $52k (various levels = % credit)

IRA Tax Deduction: SEP IRA, SIMPLE IRA, qualified plan, and TIRA (RIRA not eligible)

TIRA = Traditional IRA
RIRA = Roth IRA