12
Saver’s Credit: What It Is and How It Works
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with confidence. While we don’t cover every company or financial product on the market, we work hard to share a wide range of offers and objective editorial perspectives.
So how do we make money? Our partners compensate us for advertisements that appear on our site. This compensation helps us provide tools and services - like free credit score access and monitoring. With the exception of mortgage, home equity and other home-lending products or services, partner compensation is one of several factors that may affect which products we highlight and where they appear on our site. Other factors include your credit profile, product availability and proprietary website methodologies.
However, these factors do not influence our editors’ opinions or ratings, which are based on independent research and analysis. Our partners cannot pay us to guarantee favorable reviews. Here is a list of our partners.
do not influence our editors’ opinions or ratingsSaver’s Credit: What It Is and How It Works
The saver's credit helps eligible taxpayers offset the cost of saving for retirement.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Updated · 2 min readHow is this page expert verified?
NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
More on our editorial rigor
Head of Content, Investing & Taxes
19 years of experience Expertise Retirement planning investment management investment accountsArielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia.
Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia. Published in Head of Content, Investing & Taxes + more + more
Editor & Content Strategist
Expertise Taxes InvestingSabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York.
Sabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York. Published in Editor & Content Strategist + more + moreUncle Sam wants you to save for retirement — so much so that he offers a tax credit for doing so.
Uncle Sam wants you to save for retirement — so much so that he offers a tax credit for doing so.What is the saver’s credit?
What is the saver’s credit?The retirement savings contribution credit — the "saver’s credit" for short — is a nonrefundable tax credit worth up to $1,000 ($2,000 if married filing jointly) for mid- and low-income taxpayers who contribute to a retirement account.
The retirement savings contribution credit — the "saver’s credit" for short — is a nonrefundable tax credit worth up to $1,000 ($2,000 if married filing jointly) for mid- and low-income taxpayers who contribute to a retirement account.What is the saver’s credit worth?
What is the saver’s credit worth?The saver's credit is worth up to $1,000 ($2,000 if married filing jointly). The value of the saver’s credit is calculated based on your contributions to a traditional or Roth IRA, 401(k), SIMPLE IRA, SARSEP, 403(b) plan, 457(b) plan, or an ABLE account. You may be eligible for 50%, 20% or 10% of the maximum contribution amount, depending on your filing status and adjusted gross income.
The saver's credit is worth up to $1,000 ($2,000 if married filing jointly). The value of the saver’s credit is calculated based on your contributions to a traditional or Roth IRA, 401(k), SIMPLE IRA, SARSEP, 403(b) plan, 457(b) plan, or an ABLE account. You may be eligible for 50%, 20% or 10% of the maximum contribution amount, depending on your filing status and adjusted gross income.To qualify for the saver’s credit, the contribution must be new money; in other words, rollovers from an existing account — like a 401(k) rollover into an IRA — don't count
To qualify for the saver’s credit, the contribution must be new money; in other words, rollovers from an existing account — like a 401(k) rollover into an IRA — don't count Internal Revenue Service. Retirement Savings Contributions Credit (Saver’s Credit). Accessed Nov 13, 2025. .Keep in mind that a credit is not the same as a tax deduction — it’s better. While a tax deduction just reduces the amount of your income that's subject to taxes, a tax credit reduces your actual tax bill dollar-for-dollar.
Keep in mind that a credit is not the same as a tax deduction — it’s better. While a tax deduction just reduces the amount of your income that's subject to taxes, a tax credit reduces your actual tax bill dollar-for-dollar.Who can claim the saver’s credit?
Who can claim the saver’s credit?You’re eligible for the saver’s credit if you are 18 or older, not a full-time student and not claimed as a dependent on another person’s tax return
You’re eligible for the saver’s credit if you are 18 or older, not a full-time student and not claimed as a dependent on another person’s tax return Internal Revenue Service. Retirement Savings Contributions Credit (Saver’s Credit). Accessed Nov 13, 2025. .But that doesn’t necessarily mean you get it: You must also make a retirement plan or an IRA contribution and fall under the maximum adjusted gross income (AGI) caps the IRS sets each year (more on this below).
But that doesn’t necessarily mean you get it: You must also make a retirement plan or an IRA contribution and fall under the maximum adjusted gross income (AGI) caps the IRS sets each year (more on this below).» Not eligible? An IRA has tax perks of its own
» Not eligible? » Not eligible? An IRA has tax perks of its own AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
2025 saver's credit
2025 saver's creditThe adjusted gross income thresholds below apply to income earned in 2025, which is reported on tax returns filed in 2026.
The adjusted gross income thresholds below apply to income earned in 2025, which is reported on tax returns filed in 2026.Married filing jointly
Married filing jointly Married filing jointly50% of contribution
50% of contribution20% of contribution
20% of contribution10% of contribution
10% of contributionAGI of $47,500 or below.
AGI of $47,500 or below.$47,501 - $51,000.
$47,501 - $51,000.$51,001 - $79,000.
$51,001 - $79,000.Head of household
Head of household Head of household50% of contribution
50% of contribution20% of contribution
20% of contribution10% of contribution
10% of contributionAGI of $35,625 or below.
AGI of $35,625 or below.$35,626 - $38,250.
$35,626 - $38,250.$38,251 - $59,250.
$38,251 - $59,250.Other filers
Other filers Other filers50% of contribution
50% of contribution20% of contribution
20% of contribution10% of contribution
10% of contributionAGI of $23,750 or below.
AGI of $23,750 or below.$23,751 - $25,500.
$23,751 - $25,500.$25,501 - $39,500.
$25,501 - $39,500.Source: Internal Revenue Service.
Source: Internal Revenue Service. Source: Internal Revenue Service .2026 saver's credit
2026 saver's creditThe adjusted gross income thresholds below apply to income earned in 2026, which is reported on tax returns filed in 2027.
The adjusted gross income thresholds below apply to income earned in 2026, which is reported on tax returns filed in 2027.Married filing jointly
Married filing jointly Married filing jointly50% of contribution
50% of contribution20% of contribution
20% of contribution10% of contribution
10% of contributionAGI of $48,500 or below.
AGI of $48,500 or below.$48,501 - $52,500.
$48,501 - $52,500.$52,501 - $80,500.
$52,501 - $80,500.Head of household
Head of household Head of household50% of contribution
50% of contribution20% of contribution
20% of contribution10% of contribution
10% of contributionAGI of $36,375 or below.
AGI of $36,375 or below.$36,376 - $39,375.
$36,376 - $39,375.$39,376 - $60,375.
$39,376 - $60,375.Other filers
Other filers Other filers50% of contribution
50% of contribution20% of contribution
20% of contribution10% of contribution
10% of contributionAGI of $24,250 or below.
AGI of $24,250 or below.$24,251 - $26,250.
$24,251 - $26,250.$26,251 - $40,250.
$26,251 - $40,250.Source: Internal Revenue Service.
Source: Internal Revenue Service. Source: Internal Revenue Service .Calculating the value of the saver's credit
Calculating the value of the saver's creditUnlike many IRS rules, the math here is fairly simple: The credit is worth 50%, 20% or 10% of a maximum contribution of $2,000 (or a total of $4,000 if you're married filing jointly).
Unlike many IRS rules, the math here is fairly simple: The credit is worth 50%, 20% or 10% of a maximum contribution of $2,000 (or a total of $4,000 if you're married filing jointly).Let’s say you earn $19,000 as a single filer, and you contribute $1,000 to an eligible account. The value of your saver’s credit would be $500. If you contributed $5,000 to an eligible account, your credit would be worth $1,000, due to the cap.
Let’s say you earn $19,000 as a single filer, and you contribute $1,000 to an eligible account. The value of your saver’s credit would be $500. If you contributed $5,000 to an eligible account, your credit would be worth $1,000, due to the cap.If your contribution was made to a traditional IRA, 401(k) or other account that offers a tax deduction for contributions, your taxable income would also be reduced by the amount of your contribution.
If your contribution was made to a traditional IRA, 401(k) or other account that offers a tax deduction for contributions, your taxable income would also be reduced by the amount of your contribution.» Learn more about tax-advantaged retirement accounts: Traditional IRA vs. Roth IRA
» Learn more about tax-advantaged retirement accounts: » Learn more about tax-advantaged retirement accounts: Traditional IRA vs. Roth IRASecure 2.0 changes: Saver's match
Secure 2.0 changes: Saver's matchBeginning in 2027, the saver's credit will be replaced by the "saver's match," a new program that replaces the tax credit with a matching federal retirement plan contribution. Under the new rules, people who contribute to a workplace retirement plan or an IRA can receive a 50% match (up to $2,000) that is deposited directly into their retirement plan.
Beginning in 2027, the saver's credit will be replaced by the "saver's match," a new program that replaces the tax credit with a matching federal retirement plan contribution. Under the new rules, people who contribute to a workplace retirement plan or an IRA can receive a 50% match (up to $2,000) that is deposited directly into their retirement plan.To be eligible for this benefit, taxpayers must make $71,000 or below (married filing jointly), $53,250 or below (head of household), or $35,000 or below (single and married filing separately). However, be aware that phase-outs leading up to those thresholds will reduce the total value of the matching contribution. The higher your income is, the lower the value of your allowed matching contribution will be
To be eligible for this benefit, taxpayers must make $71,000 or below (married filing jointly), $53,250 or below (head of household), or $35,000 or below (single and married filing separately). However, be aware that phase-outs leading up to those thresholds will reduce the total value of the matching contribution. The higher your income is, the lower the value of your allowed matching contribution will be U.S. Senate Finance Committee. SECURE 2.0 Act of 2022. Accessed Nov 13, 2025. .» Learn more about what the Secure 2.0 Act means for your retirement
» » Learn more about what the Secure 2.0 Act means for your retirement AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
ON THIS PAGE
What is the saver’s credit? What is the saver’s credit? What is the saver’s credit worth? What is the saver’s credit worth? Who can claim the saver’s credit? Who can claim the saver’s credit? 2025 saver's credit 2025 saver's credit 2026 saver's credit 2026 saver's credit Calculating the value of the saver's credit Calculating the value of the saver's credit Secure 2.0 changes: Saver's match Secure 2.0 changes: Saver's matchON THIS PAGE
What is the saver’s credit? What is the saver’s credit? What is the saver’s credit worth? What is the saver’s credit worth? Who can claim the saver’s credit? Who can claim the saver’s credit? 2025 saver's credit 2025 saver's credit 2026 saver's credit 2026 saver's credit Calculating the value of the saver's credit Calculating the value of the saver's credit Secure 2.0 changes: Saver's match Secure 2.0 changes: Saver's match More like this Taxes IRS Free File: What It Is, How It Works Interested in the IRS Free File service? All you need to know about the program, plus other IRS options for free tax filing. 2 By Sabrina Parys, Tina Orem 10 Key IRS Tax Forms, Schedules and Publications for 2026 Here are some major IRS tax forms, schedules and publications everyone should know. Tina Orem 1040 Form: What It Is, How to Fill One Out in 2026 Here's what you need to know about Form 1040: the mother of all tax forms. 2 By Tina Orem, Sabrina Parys Get started Get startedon Larson Tax Relief's website
Tax Levies & Liens Release, plus Wage Garnishment Relief;
Tax Levies & Liens Release, plus Wage Garnishment Relief;End Penalties & Interest and Resolve Back Taxes;
End Penalties & Interest and Resolve Back Taxes;IRS Audit Defense, Tax Negotiation, and Payroll Tax Support.
IRS Audit Defense, Tax Negotiation, and Payroll Tax Support. Get started Get startedon Larson Tax Relief's website