Have you heard of the Savers Credit? You may qualify if you contribute to an IRA, SEP-IRA, SIMPLE, 401(k), 403(b), or 457 retirement savings plan.1
You can qualify for the Savers Credit for the 2017 tax year if you are a) married filing jointly with income of $62,000 or less, b) married filing separately or single with income of $31,000 or less, or c) filing as a head of household with income of $46,500 or less.1
To be eligible for the credit, you must be 18 or older, you must not be a full-time student, and you cannot be claimed as an exemption on someone else’s federal return.1
The credit can be as large as $2,000 for an individual and as large as $4,000 for married couples. In many respects, a tax credit is better than a tax deduction – while deductions lower your taxable income, credits apply after you figure out your taxable income.1
This is another great reason to contribute to a retirement account. Your income should not limit you from saving actively for retirement – and the government offers this big tax credit as a great incentive!
How are you saving for retirement? We would like to give you an overview of where you stand, with no obligation and no strings attached.
Lewis Wealth Management Group can be reached at 217-337-5584, firstname.lastname@example.org, or at www.paullewis.com.
Securities and Advisory Services offered through Triad Advisors Member FINRA/SIPC.
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1 – irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit [1/30/17]