2023 Saver’s CreditThe Retirement Savings Contributions Credit, commonly referred to as the Saver’s Credit, is a Federal tax credit for making eligible contributions to your IRA or an employer-sponsored retirement plan, like the YMCA Retirement Fund’s 403(b) Smart Account. A tax credit is an amount of money that taxpayers can subtract directly from the taxes they owe when filing their tax return! Are You Eligible For The Saver’s Credit? You are eligible for the Saver’s Credit if you are age 18 or older, not claimed as a dependent on another person’s tax return, and not a full-time student. You must also not exceed the following adjusted gross income (AGI) requirements: Single with AGI up to $36,500 Head of Household with AGI up to $54,750 Married Couple Filing Jointly with AGI up to $73,000 How much is the credit? The Saver’s Credit amount you may receive varies. Depending on your filing status and AGI, you can claim a tax credit worth 50%, 20%, or 10% of eligible contributions. The maximum contribution amount that may qualify for the credit is $2,000 ($4,000 if married filing jointly), making the maximum credit $1,000 ($2,000 if married filing jointly). Use the chart below to calculate your credit. 2023 Saver’s Credit (Source: IRS) Credit Rate Married Filing Jointly Head of Household All Other Filers* 50% of your contribution AGI not more than $43,500 AGI not more than $32,625 AGI not more than $21,750 20% of your contribution $43,501- $47,500 $32,626 – $35,625 $21,751 – $23,750 10% of your contribution $47,501 – $73,000 $35,626 – $54,750 $23,751 – $36,500 0% of your contribution more than $73,000 more than $54,750 more than $36,500 *Single, married filing separately, or qualifying widow(er). If you are eligible for the Saver’s Credit, more information can be found at www.irs.gov. If you meet the eligibility criteria, then you can claim the credit using Form 8880. Eligible 2023 contributions must be made to the Fund’s 403(b) Savings Plan in the same tax year; Tax-deferred contributions lower your adjusted gross income (AGI). July 2023