Uncle Sam helps you save more
Find out if you're eligible for the Saver's Credit.
The Saver's Tax Credit rewards low and moderate income taxpayers who are working hard and need more help saving for retirement. If you qualify, it gives you a federal income tax credit on your federal income tax return – just for investing for retirement through your IRA, 403(b), 457(b) and/or 401 plan.
The Saver's Tax Credit is a non-refundable income tax credit that could reduce your federal income tax liability to $0.
Your eligibility depends on two things: your filing status and your modified adjusted gross income.
These charts help you find out if you are qualify for the Saver's Tax Credit.
| Amount of Credit | Married filing jointly | Head of Household | Single/Others |
|---|---|---|---|
| 50% of first $2,000 deferred | $0 to $39,000 | $0 to $29,250 | $0 to $19,500 |
| 20% of first $2,000 deferred | $39,001 to $42,500 | $29,251 to $31,875 | $19,501 to $21,250 |
| 10% of first $2,000 deferred | $42,501 to $65,000 | $31,876 to $48,750 | $21,251 to $32,500 |
| Amount of Credit | Married filing jointly | Head of Household | Single/Others |
|---|---|---|---|
| 50% of first $2,000 deferred | $0 to $38,000 | $0 to $28,875 | $0 to $19,250 |
| 20% of first $2,000 deferred | $38,501 to $41,500 | $28,876 to $31,125 | $19,251 to $20,750 |
| 10% of first $2,000 deferred | $41,501 to $64,000 | $31,126 to $48,000 | $20,751 to $32,000 |
Source: https://www.fool.com/retirement/2019/11/17/2020-savers-credit-let-the-irs-pay-you-to-save-for.aspx
Talk to your Nationwide plan representative today to find out more and to discuss your individual goals for your deferred comp account.
We can't give you tax or legal advice. You should check with your tax professional or legal advisor for answers to specific questions.