Presentation on theme: "Contribute to our retirement savings plan! 1 1. Do you contribute to our qualified retirement savings plan? Do you earn up to: ◦ $53,000 (filing jointly)"— Presentation transcript:
Do you contribute to our qualified retirement savings plan? Do you earn up to: ◦ $53,000 (filing jointly) ◦ $39,750 (head of household) ◦ $26,500 (single or married filing separately) You may be eligible for a credit against this year’s tax bill! 2
You meet the income limits You’re at least 18 and not a full-time student No one can claim you as a dependent 3
4 Saver’s Credit TY 2008 Adjusted Gross Income Limits Joint filersHead of Household Single or Married Filing Separately 50% of contribution $0-$32,000$0-$24,000$0-$16,000 20% of contribution $32,001-$34,500$24,001-$25,875$16,001-$17,250 10% of contribution $34,501-$53,000$25,876-$39,750$17,251-$26,500
Kelly saves in our retirement plan ◦ She meets the Saver’s Credit eligibility criteria ◦ She files taxes jointly on adjusted gross income of $34,000 ◦ She is eligible for a credit on 20% of her retirement contribution (based on the chart) Kelly’s retirement contribution for 2008:$2,000 Amount IRS considers for the credit:$2,000 Dollar value of the 20% credit:$400 Kelly can apply the $400 credit toward any federal tax she owes when she files her 2008 return An example of how it works 5
John saves in our retirement plan ◦ He meets the Saver’s Credit eligibility criteria ◦ He files taxes single on adjusted gross income of $22,000 ◦ He is eligible for a credit on 10% of his retirement contribution (based on the chart) John’s retirement contribution for 2008:$2,000 Amount IRS considers for the credit: $2,000 Dollar value of the 10% credit: $200 John can apply the $200 credit toward any federal tax he owes when he files his 2008 return An example of how it works 6
The credit applies only to contributions up to $2,000. Withdrawals from qualified plans or IRAs in the current and two previous tax years affect the amount of the Saver’s Credit. The Saver’s Credit is a “nonrefundable” tax credit. This means it can only be used to reduce the amount of taxes you owe. 7
Tax-preferred tool for building retirement savings You may get up to $1,000 through the Saver’s Credit Not in the plan? Enroll Today! (Provide information on how to enroll) 8 Why Save in our retirement saving plan?
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