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Saving On Your Taxes with the Saver’s Credit
If you save in the Fund’s 403(b) Smart Account, you may receive an important credit when you file your taxes.

If you save in the YMCA Retirement Fund’s 403(b) Smart Account, you may have an opportunity to save on your taxes with the saver’s credit. The saver’s credit rewards taxpayers who are saving for retirement with a tax break.

The deadline to file 2018 taxes is Monday, April 15, 2019. If you are eligible for the saver’s credit, you can claim it using Form 8880, “Credit for Qualified Retirement Savings Contributions,”  which can be found at www.irs.gov.

Am I Eligible for the Saver’s Credit?

You are eligible for the saver’s credit if you saved in the Fund’s 403(b) Smart Account in 2018. To qualify for the saver’s credit, your contribution must be new money; in other words, rollovers from an existing account do not apply. You must also be:

  • Age 18 or older
  • Not a full-time student
  • Not claimed as a dependent on another person’s tax return

You must also meet the income requirements set by the IRS each year. For 2018, the maximum adjusted gross income (AGI) to be eligible for the saver’s credit is:

  • Single with AGI up to $31,500
  • Head of Household with AGI up to $47,250
  • Married Couple Filing Jointly with AGI up to $63,000
How Much Can I Claim from the Saver’s Credit?

The value of the saver’s credit is calculated based on your contributions to the 403(b) Smart Account. The maximum credit you can claim is $2,000 or $4,000 if you are married and filing your taxes jointly.

You may be eligible for 50%, 20% or 10% of the maximum contribution amount, depending on your filing status and adjusted gross income. Look at the table below to learn how much credit you can receive on your 2018 taxes.

        
 Credit Single
(AGI)
Head of
Household
(AGI)

 Married Couple
Filing Jointly
(AGI)
 50% x Your
403(b)
Contribution
 $19,000 or less  $28,500 or less  $38,000 or less
 20% x Your
403(b)
Contribution
 $19,001-$20,500  $28,501-$30,750  $38,001-$41,000
 10% x Your
403(b)
Contribution
 $20,501-$31,500  $30,751-$47,250  $41,001-$63,000

 

Here are two examples of credits you can receive on your taxes:

Example 1:

Adam files his taxes as a single filer. He saved $1,000 in the Fund’s 403(b) Smart Account in 2018. His adjusted gross income is $20,000. With the saver’s credit, Adam is eligible to claim a 20% credit on his contributions. His total tax credit is worth $200.

Example 2:

Betty and Sam are married and file their taxes jointly. Betty saved $1,000 in the Fund’s 403(b) Smart Account. Sam also saved $1,000 in the Fund’s 403(b) Smart Account. Their 2018 combined adjusted gross income is $60,000. Each of them is eligible to claim a 10% credit for their contributions. Together, their credits are worth $200.

Be Smart. 403(b) Smart.

If you did not save in the Fund’s 403(b) Smart Account in 2018, why not start saving this year and claim the saver’s credit on your 2019 tax return?

You can open a 403(b) Smart Account by filling out this form and submitting it to your Human Resources Department.