End-of-Year Deadline Applies to Employer-Sponsored Plans
The IRS is reminding workers that contributions to employer-sponsored IRAs, 401(k) plans, 403(b) plans, or similar workplace retirement programs must be made by year’s end to qualify for the Retirement Savings Contributions Credit.
Also known as the “Saver’s Credit,” this special tax break for low- and moderate-income workers helps offset part of the first $2,000 workers contribute to the plans. The saver’s credit can be claimed for tax year 2017 by:
- Married couples filing jointly with incomes up to $62,000;
- Heads of household with incomes up to $46,500; and
- Married individuals filing separately and singles with incomes up to $31,000.
However, contributions (elective deferrals) to an employer-sponsored plan must be made by the end of December to qualify for the credit.
Click here to read the IRS reminder in its entirety.
For additional information on 401(k) plans, please see our Retirement Plans section.
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Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
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