contribute to our retirement savings plan! 1 1. do you contribute to our qualified retirement...
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Contribute to our retirement savings plan!
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Do you contribute to our qualified retirement savings plan?
Do you earn up to:◦ $53,000 (filing jointly)◦ $39,750 (head of household)◦ $26,500 (single or married filing separately)
You may be eligible for a credit against this year’s tax bill!
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You meet the income limits
You’re at least 18 and not a full-time student
No one can claim you as a dependent
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Saver’s Credit
TY 2008
Adjusted Gross Income Limits
Joint filers Head of Household
Single or Married Filing Separately
50% of contribution
$0-$32,000 $0-$24,000 $0-$16,000
20% of contribution
$32,001-$34,500 $24,001-$25,875 $16,001-$17,250
10% of contribution
$34,501-$53,000 $25,876-$39,750 $17,251-$26,500
Kelly saves in our retirement plan◦ She meets the Saver’s Credit eligibility criteria ◦ She files taxes jointly on adjusted gross income of $34,000 ◦ She is eligible for a credit on 20% of her retirement
contribution (based on the chart)
Kelly’s retirement contribution for 2008:$2,000Amount IRS considers for the credit: $2,000Dollar value of the 20% credit: $400
Kelly can apply the $400 credit toward any federal tax she owes when she files her 2008 return
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John saves in our retirement plan◦ He meets the Saver’s Credit eligibility criteria ◦ He files taxes single on adjusted gross income of $22,000 ◦ He is eligible for a credit on 10% of his retirement
contribution (based on the chart)
John’s retirement contribution for 2008:$2,000Amount IRS considers for the credit: $2,000Dollar value of the 10% credit: $200
John can apply the $200 credit toward any federal tax he owes when he files his 2008 return
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The credit applies only to contributions up to $2,000.
Withdrawals from qualified plans or IRAs in the current and two previous tax years affect the amount of the Saver’s Credit.
The Saver’s Credit is a “nonrefundable” tax credit. This means it can only be used to reduce the amount of taxes you owe.
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Tax-preferred tool for building retirement savings
You may get up to $1,000 through the Saver’s Credit
Not in the plan? Enroll Today! (Provide information on how to enroll)
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Why Save in our retirement saving plan?