2020 Tax Incentive for Retirement Savers

If you save in the Fund’s 403(b) Smart Account, you may be eligible for the saver’s credit.

Tax season is here, and if you save in the YMCA Retirement Fund’s 403(b) Smart Account, you may be eligible to reduce your tax bill with the saver’s credit. The saver’s credit rewards taxpayers who are saving for retirement with a tax break.

The deadline to file 2020 taxes has been extended to Wednesday, May 17, 2021. If you are eligible for the saver’s credit, you can claim it using Form 8880, which can be found at www.irs.gov.


You are eligible for the saver’s credit if you are age 18 or older, not a full-time student, and not claimed as a dependent on another person’s tax return. You are also eligible if you make tax-deferred contributions to the 403(b) Smart Account. Rollovers from an existing account do not apply.

You must also meet the following income requirements (adjusted gross income or “AGI”):

  • Single with AGI up to $32,500
  • Head of Household with AGI up to $48,750
  • Married Couple Filing Jointly with AGI up to $65,000


You can claim a tax credit worth 50%, 20%, or 10% of your 403(b) contribution amount, depending on your filing status and adjusted gross income. The credit is worth a maximum amount of $1,000 if you are a single filer and $2,000 if you are married filing jointly.

2020 Saver’s Credit
Credit Rate Married Filing Jointly Head of Household All Other Filers*
50% of your contribution AGI not more than $39,000 AGI not more than $29,250 AGI not more than $19,500
20% of your contribution $39,001 – $42,500 $29,251 – $31,875 $19,501 – $21,250
10% of your contribution $42,501 – $65,000 $31,876 – $48,750 $21,251 – $32,500
0% of your contribution more than $65,000 more than $48,750 more than $32,500

*Single, married filing separately or qualifying widow(er)


Jill earned $41,000 in 2020 and is filing her taxes. Her spouse was unemployed during the year and didn’t have earnings. Jill contributed $2,000 in the Fund’s 403(b) Smart Account in 2020. Her adjusted gross income is $39,000. With the saver’s credit, Jill is eligible to claim a 50% credit of $1,000 on her contributions.


If you did not contribute to the Fund’s 403(b) Smart Account in 2020, start saving this year to claim the saver’s credit on your 2021 tax return! Open a 403(b) Smart Account with the Fund by filling out this form and submitting it to your Human Resources Department.