Low and Moderate Income Taxpayers Can Save More through Saver’s Credit in 2024, IR-2023-222

The IRS has reminded low and moderate income taxpayers that they can save more for their retirement now through Saver’s Credit. This credit is available to taxpayers who are 18 years or older and not a claimed dependent or full time student. The Retirement Savings Contributions Credit, also known as saver’s credit will help offset a part of the first $2000 that workers voluntarily contribute to their respective workplace retirement programs. Through this saver’s credit, taxpayers can even earn a special tax credit in 2024 and the years ahead. The credit also helps eligible beneficiaries of an Achieving a Better Life Experience (ABLE) account, by making a contribution to it.

The contribution deadlines vary according to their qualifying retirement credit.Taxpayers with Individual Retirement Arrangements (IRA) have until April 15, 2024 for filing their 2023 return, to set up a new IRA or even to add money to an existing IRA. Meanwhile, elective deferrals (contributions) to workplace retirement plans must be made by December 31 to a 401(k) plan, 403(b) plan, governmental 457 plan or Thrift Savings Plan (TSP) by respective qualifying persons.