Get a Tax Reward for Saving for Retirement

If you sock away money in a retirement plan, you may be eligible for a tax credit from Uncle Sam worth up to $1,000 per person.

Question: My son works full-time but his employer doesn’t offer a 401(k). Is he eligible for the retirement saver’s tax credit?

Answer: He could be if he contributes to an IRA or other retirement-savings plan. To be eligible for the credit, he must be 18 or older, not a full-time student and not claimed as a dependent on another person’s return. He also must meet the income criteria. In 2018, single filers can only qualify for the saver’s credit if their adjusted gross income is $31,500 or less. The income limit is $47,250 for people filing as head of household and $63,000 for joint filers.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.