Understanding the Saver's Credit: A Smart Way to Boost Your Retirement Savings

What You Need to Know About the Saver's Credit

If you qualify, you could snag a Saver's Credit worth up to $2,000. Saving for retirement isn't always easy when you have bills knocking on your door every month. Maybe that's one reason why 1 in 4 workers have no retirement savings at all, according to research by The Motley Fool. But if you could squeeze even a few dollars out of your existing expenses every month to beef up your retirement savings, you could get rewarded for it.

The Saver's Credit, also known as the Retirement Savings Contributions Credit, is available to millions of low-and-moderate income taxpayers who save for retirement. Depending on your filing status and financial situation, you could qualify for a credit worth up to $2,000.

Unfortunately, 53% of workers have no idea that this tax credit exists, according to the latest survey from Transamerica Center for Retirement Studies, so many people might be leaving money on the table every tax season.

• Key Takeaway: Check if you qualify for the Saver's Credit and start maximizing your retirement savings today.

Are You Eligible for the Saver's Credit?

As with most tax benefits, there are limits to the Saver's Credit. The maximum credit you could earn is $1,000 if you are single and $2,000 if you are married filing jointly. Your exact credit will depend on your filing status and income. If contributing to your retirement account is one of your goals for 2024, check out the income limits in the table to see if you might qualify for the credit.