Posted on 07 February 2013
By Mark Miller
If your household income last year was $57,500 or less, you could be leaving money on the table this tax season.
Uncle Sam offers a tax credit that can be worth up to half of what you contribute to a traditional individual retirement account (IRA), Roth or workplace retirement plan. The Retirement Savings Contribution Credit – a.k.a the Saver’s Credit – is only available to taxpayers with moderate or low income.
Many people who qualify for the credit aren’t benefiting: only 20 percent of taxpayers with income under $50,000 are aware that the credit exists, according to a survey by the Transamerica Center for Retirement Studies (TCRS).
A 50 percent break on retirement savings sounds like a pretty good deal, and it can make a dent in one of the nation’s biggest retirement problems: low saving rates among low- and moderate-income households. The question is, how to get more people to use it. Learn more at Reuters Money.