The Saver's Credit

The Savers

The saver’s credit rewards low- and middle-income retirement savers who contribute money into their IRAs, 401(k)s, 403(b)s, etc. The break of up to $2,000 for joint filers and $1,000 for others is capped at 50%, 20% or 10% of payins, depending on adjusted gross income. For 2023, it fully phases out at AGIs over $36,500 for singles, $54,750 for household heads and $73,000 for joint filers.

In the Future

These savers will see a different benefit beginning in 2027. The current credit will be replaced with a 50% government match on up to $2,000 of payins per person, with the amount contributed into the saver’s retirement account. The income levels to qualify for the match aren’t slated to increase, other than with inflation.