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What are the benefits for low-income savers?

April 26, 2017Benefits low-income Savers

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What are the benefits for low-income savers?

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Certain lower-income taxpayers are eligible to receive a non-refundable tax credit of up to $1,000 for elective contributions made to TSA plans. The credit is a percentage of the first $2,000 contributed to an IRA, TSA, 401(k) plan, or governmental 457(b) plan. The credit percentage is based on the taxpayer’s modified Adjusted Gross Income under the following table: The income brackets are to be adjusted for inflation annually.