retirement savings contributions credit


A federal tax credit that applies to contributions made to qualified retirement plans by income eligible taxpayers. The credit is calculated as a percentage of the contributions made, from 10% to 50%, depending on the taxpayer's adjusted gross income (AGI). Generally, the lower a taxpayer's AGI, the higher the percentage of the tax credit. The maximum credit is $1,000 for single filers and $2,000 for joint filers. Also called retirement saver's credit.
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retirement readiness retracement