News Column

Many Low- to Moderate-Income Taxpayers Can Benefit From Retirement Savings Contributions Credit Saver's Credit

February 21, 2014



By a News Reporter-Staff News Editor at Economics Week -- Many American workers may be missing out on a valuable tax credit this year. The Internal Revenue Service's Retirement Savings Contributions Credit, also known as the Saver's Credit, is available to low- to moderate-income workers who are saving for retirement, yet just 23 percent of American workers with annual household incomes of less than $50,000 are aware of the credit, according to the 14(th) Annual Transamerica Retirement Survey.

"The Saver's Credit reduces an eligible taxpayer's federal income taxes dollar for dollar, making it a meaningful incentive for low- to moderate-income individuals and households to save for retirement in a 401(k), 403(b) or IRA. Unfortunately, many may be missing out simply because they are unaware of it," said Catherine Collinson, president of nonprofit Transamerica Center for Retirement StudiesŪ. "It's critical that we raise awareness of this important tax credit and opportunity to save for retirement so that more workers can take advantage of it and improve their retirement outlook."

Keywords for this news article include: Economics, Finance and Investment, Transamerica Center for Retirement Studies.

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Source: Economics Week


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