Bookmark and Share Banner
IRS NewswireNovember 22, 2023

News Essentials

What’s Hot

News Releases

IRS – The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions

The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News Home

IRS Resources

Contact My Local Office

Filing Options

Forms & Instructions

Frequently Asked Questions


Taxpayer Advocate

Where to File

IRS Social Media

Issue Number:    IR-2023-222

Inside This Issue

Saver’s Credit can help low- and moderate-income taxpayers to save more in 2024

WASHINGTON —The Internal Revenue Service reminds low- and moderate-income taxpayers that they can save for retirement now and possibly earn a special tax credit in 2024 and years ahead.

The Retirement Savings Contributions Credit, also known as the Saver’s Credit, helps offset part of the first $2,000 workers voluntarily contribute to Individual Retirement Arrangements (IRAs), 401(k) plans and similar workplace retirement programs. The credit also helps any eligible person with a disability who is the designated beneficiary of an Achieving a Better Life Experience (ABLE) account and makes a contribution to that account. For more information about ABLE accounts, see Publication 907, Tax Highlights for Persons With Disabilities.

The maximum Saver’s Credit is $1,000 ($2,000 for married couples). The credit can increase a taxpayer’s refund or reduce the tax owed but is affected by other deductions and credits. Distributions from a retirement plan or ABLE account reduce the contribution amount used to figure the credit.

Contribution deadlines
Individuals with IRAs have until April 15, 2024 – the due date for filing their 2023 return – to set up a new IRA or add money to an existing IRA for 2023. Both Roth and traditional IRAs qualify.

Individuals with workplace retirement plans still have time to make qualifying retirement contributions and get the Saver’s Credit on their 2023 tax return. Elective deferrals (contributions) to workplace retirement plans must be made by December 31 to a:

  • 401(k) plan.
  • 403(b) plan for employees of public schools and certain tax-exempt organizations.
  • Governmental 457 plan for state or local government employees.
  • Thrift Savings Plan (TSP) for federal employees.

See the instructions to Form 8880, Credit for Qualified Retirement Savings Contributions, for a list of qualifying workplace retirement plans and additional details.

To be eligible, taxpayers must be 18 years of age and older, not claimed as a dependent and not a full-time student. The Saver’s Credit has income limits based on a taxpayer’s adjusted gross income and their marital or filing status.

2023 income limits are:

  • Married couples filing jointly with adjusted gross incomes up to $73,000.
  • Heads of household with adjusted gross incomes up to $54,750.
  • Married individuals filing separately and singles with adjusted gross incomes up to $36,500.

Taxpayers can use the Interactive Tax Assistant tool for the Saver’s Credit to determine their eligibility.

Visit the Saver’s Credit page on to learn about rules, contribution rates and credit limits.


Back to Top

FaceBook Logo  YouTube Logo  Instagram Logo  Twitter Logo  LinkedIn Logo

Thank you for subscribing to the IRS Newswire, an IRS e-mail service.

If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe.

This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

This email was sent to by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535GovDelivery logo