IRS Reminds Low- and Moderate-Income Taxpayers of Saver’s Credit to Save Retirement Savings in 2025 and Future Years, IR-2024-298

The IRS reminded low- and moderate-income taxpayers to save for retirement now and possibly earn a tax credit in 2025 and future years through the Saver’s Credit. The Retirement Savings Contributions Credit, or Saver’s Credit offset a portion of the first $2,000 ($4,000 if married filing jointly) contributed to IRAs, 401(k)s, and similar plans. Following are the criteria to qualify for the Saver’s Credit:

• Be aged 18 or older;
• Not be claimed as a dependent on another return; and
• Not be full-time students.

Further, the income limits for eligibility are:

• Up to $76,500 for married couples filing jointly,
• Up to $57,375 for heads of household; and
• Up to $38,250 for single filers and others.

Additionally, IRA contributions for 2024 can be made until April 15, 2025, while contributions to workplace retirement plans must be completed by December 31, 2024, to qualify for the Saver’s Credit. For more information, refer to Form 8880, Credit for Qualified Retirement Savings Contributions, and visit the Saver’s Credit page on IRS.gov.

IR-2024-298