Stegman & Company » 401(k) plan http://www.stegman.com Stegman & Company Mon, 20 May 2013 15:16:19 +0000 en-US hourly 1 2011 Saver’s Credit http://www.stegman.com/2012/01/2011-savers-credit/ http://www.stegman.com/2012/01/2011-savers-credit/#comments Thu, 05 Jan 2012 20:34:24 +0000 dustin http://www.stegman.com/?p=1842 According    to    the    Internal   Revenue Service (IRS), low and moderate-income workers can earn a special tax credit, the Retirement Savings Contribution Credit, by taking steps to save money. The saver’s credit helps offset part of the first $2,000 that workers voluntarily contribute to an IRA or 401(k) plan.

Eligible workers still have until April 17, 2012 to make qualifying retirement contributions to an existing IRA or to set up a new retirement arrangement and receive the credit on their 2011 tax return. However, elective deferrals must have been made by the end of the year to a 401(k) plan or similar workplace programs, such as a 403(b) plan, a government 457 plan, or a thrift savings plan for federal employees.

The saver’s credit may be claimed by:

  1. Married couples filing jointly with incomes up to $56,500 in 2011 or $57,500 in 2012
  2. Heads of households with incomes up to $42,375 in 2011 or $43,125 in 2012
  3. Married individuals filing separately and singles with incomes up to $28,250 in 2011 or $28,750 in 2012

Eligible taxpayers must be 18 years of age and may not be claimed as a dependent on someone else’s tax return. It is unavailable to full-time students.

Questions? For more information on the Saver’s Credit, please contact Keith N. Wiessner, CPA at (410) 823-8000.

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