Saver’s Credit can increase 2025 savings for low- and moderate- income taxpayers

The IRS reminds taxpayers with low and moderate incomes that they can start saving for retirement now and potentially receive a tax credit in 2025 and beyond.

The Retirement Savings Contributions Credit, also known as the Saver’s Credit, helps taxpayers offset a portion of the first $2,000 ($4,000 if married filing jointly) they voluntarily contribute to Individual Retirement Arrangements (IRAs), 401(k) plans and similar workplace retirement programs.

For more information and a list of eligible workplace retirement plans, see the instructions to Form 8880, Credit for Qualified Retirement Savings Contributions. Visit the Saver’s Credit page on IRS.gov to learn about rules, contribution rates and credit limits.