Retirement Savings Contributions Savers Credit

You may be able to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan. And, beginning in 2018, if you’re the designated beneficiary you may be eligible for a credit for contributions to your Achieving a Better Life Experience (ABLE) account.

Who's eligible for the credit?

You're eligible for the credit if you're:

Age 18 or older;
Not a full-time student; and
Not claimed as a dependent on another person’s return.

See the instructions for Form 8880, Credit for Qualified Retirement Savings Contributions, for the definition of a full-time student.

Amount of the credit

The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA or ABLE account contributions depending on your adjusted gross income (reported on your Form 1040 series return). The maximum credit amount is $2,000 ($4,000 if married filing jointly). Use the chart below to calculate your credit.

ABLE contributions eligible for the credit

Beginning in 2018, the Saver’s Credit can be taken for your contributions to an ABLE account if you’re the designated beneficiary.

Rollover contributions (money that you moved from another ABLE account or from a Qualified Tuition Plan (QTP) account do not qualify for the credit. Also, your eligible contributions may be reduced by any recent distributions you received from your ABLE account.

*Single, married filing separately, or qualifying widow(er)

2019 Saver's Credit
Credit Rate	Married Filing Jointly	Head of Household	All Other Filers*
50% of your contribution	AGI not more than $38,500	AGI not more than $28,875	AGI not more than $19,250
20% of your contribution	$38,501 - $41,500	$28,876 - $31,125	$19,251 - $20,750
10% of your contribution	$41,501 - $64,000	$31,126 - $48,000	$20,751 - $32,000
0% of your contribution	more than $64,000	more than $48,000	more than $32,000

2018 Saver's Credit
Credit Rate	Married Filing Jointly	Head of Household	All Other Filers*
50% of your contribution	AGI not more than $38,000	AGI not more than $28,500	AGI not more than $19,000
20% of your contribution	$38,001 - $41,000	$28,501 - $30,750	$19,001 - $20,500
10% of your contribution	$41,001 - $63,000	$30,751 - $47,250	$20,501 - $31,500
0% of your contribution	more than $63,000	more than $47,250	more than $31,500

2017 Saver's Credit
Credit Rate	Married Filing Jointly	Head of Household	All Other Filers*
50% of your contribution	AGI not more than $37,000	AGI not more than $27,750	AGI not more than $18,500
20% of your contribution	$37,001 - $40,000	$27,751 - $30,000	$18,501 - $20,000
10% of your contribution	$40,001 - $62,000	$30,001 - $46,500	$20,001 - $31,000
0% of your contribution	more than $62,000	more than $46,500	more than $31,000

2016 Saver's Credit
Credit Rate	Married Filing Jointly	Head of Household	All Other Filers*
50% of your contribution	AGI not more than $37,000	AGI not more than $27,750	AGI not more than $18,500
20% of your contribution	$37,001 - $40,000	$27,751 - $30,000	$18,501 - $20,000
10% of your contribution	$40,001 - $61,500	$30,001 - $46,125	$20,001 - $30,750
0% of your contribution	more than $61,500	more than $46,125	more than $30,750

2015 Saver's Credit
Credit Rate	Married Filing Jointly	Head of Household	All Other Filers*
50% of your contribution	AGI not more than $36,500	AGI not more than $27,375	AGI not more than $18,250
20% of your contribution	$36,501 - $39,500	$27,376 - $29,625	$18,251 - $19,750
10% of your contribution	$39,501 - $61,000	$29,626 - $45,750	$19,751 - $30,500
0% of your contribution	more than $61,000	more than $45,750	more than $30,500

Retirement savings eligible for the credit

The Saver’s Credit can be taken for your contributions to a traditional or Roth IRA; your 401(k), SIMPLE IRA, SARSEP, 403(b), 501(c)(18) or governmental 457(b) plan; and your voluntary after-tax employee contributions to your qualified retirement and 403(b) plans.

Rollover contributions (money that you moved from another retirement plan or IRA) aren’t eligible for the Saver’s Credit. Also, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA.

Example: Jill, who works at a retail store, is married and earned $38,000 in 2018. Jill’s husband was unemployed in 2018 and didn’t have any earnings. Jill contributed $1,000 to her IRA in 2018. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $36,000. Jill may claim a 50% credit, $500, for her $1,000 IRA contribution.