Concise Takeaway
The Saver’s Credit is a nonrefundable credit for eligible taxpayers who make qualified retirement contributions. The credit rate is 50%, 20%, or 10%, depending on AGI and filing status, and applies to up to $2,000 of contributions ($4,000 MFJ).
What the Saver’s Credit Is
The credit applies to qualified contributions or elective deferrals made by the taxpayer (and spouse, if filing jointly) to certain retirement plans.
Maximum credit:
- $1,000 (single, HOH, all others)
- $2,000 (MFJ)
Taxpayers calculate the credit on Form 8880.
2025 Saver’s Credit Rates
|
Credit Rate |
Married Filing Jointly |
Head of Household |
All Others |
|
50% |
AGI ≤ $47,500 |
AGI ≤ $35,625 |
AGI ≤ $23,750 |
|
20% |
$47,500–$51,000 |
$35,625–$38,250 |
$23,750–$25,500 |
|
10% |
$51,000–$79,000 |
$38,250–$59,250 |
$25,500–$39,500 |
|
0% |
AGI > $79,000 |
AGI > $59,250 |
AGI > $39,500 |
Eligibility Requirements
The person making the contribution must:
- Be age 18 or older
- Not be claimed as a dependent
- Not be a student
A person is considered a student if, during any part of five calendar months, they:
- Were enrolled full‑time at a school, or
- Took a full‑time on‑farm training course
Technical, trade, and mechanical schools qualify; correspondence and on‑the‑job training do not.
Qualified Contributions
Eligible contributions include:
- Traditional or Roth IRA contributions
- Elective deferrals to:
- 401(k), 403(b), governmental 457(b)
- SIMPLE, SEP
- Federal Thrift Savings Plan
- Voluntary after‑tax contributions to qualified plans
- Contributions to 501(c)(18)(D) plans
- Contributions to an ABLE account by the designated beneficiary
Not eligible
- Employer contributions under 414(h)(2)
- Rollover contributions
Reduction for Distributions
Eligible contributions must be reduced by distributions received by the taxpayer (and spouse, if MFJ) after 2022 and before the 2025 return due date from:
- Traditional or Roth IRAs
- ABLE accounts
- 401(k), 403(b), governmental 457(b), 501(c)(18)(D)
- SEP, SIMPLE
- Federal Thrift Savings Plan
- Other qualified retirement plans under section 4974(c)
Saver’s Credit Flow Summary
- Confirm age, dependency, and student status
- Identify qualified contributions
- Reduce contributions for prior distributions
- Determine AGI and filing status
- Apply the 50%, 20%, or 10% rate
- Claim the credit on Form 8880