If you want a tax credit for retirement savings contributions, you might be able to get it if you already make eligible contributions to your company sponsored plan. It all is based on how old you are and how much you are earning.
How much you can get back
Should you be making eligible contributions to an IRA, 401k or another retirement plan, it might be possible to get a credit of as much as $1,000-$2,000 if you are married and filing together. The credit is based on a percent of the contribution amount. The lower your income, the higher the percentage you will be able to get back.
If you are single, you cannot make earn more than $28,250. If you are a head of household, you must make $42,375 or less. If you are married and filing jointly, you must make $56,500 or less.
Other eligibility requirements
In order to qualify for a credit, you must be at least 18, and you cannot have been a full time student within the past calendar year. In addition, you cannot be claimed as a dependent on anyone else’s return.
Form to use
In order to get the credit, make sure you use Form 8880, credit for qualified retirement savings contributions.
Getting a tax credit for retirement savings contributions is definitely worth the time and effort. First just figure out if you qualify. Than you just have to fill out the form, send it in, and you will have your tax credit shortly.
Choosing to work on a personal financial strategy is made easy when using tools like the best retirement calculator. Enlisting the help of tools used by experts is always the best way to go. Nothing can be more helpful to financial planning than having tools that will make that planning easy to understand. The numbers matter. The tools needed must be reliable and accurate.
Retirement Savings Calculator
The retirement calculator has the strongest potential for making or breaking a savings plan. While the program is created by some engineer, it is the end-user being able to read the output that makes the most difference. A savings calculator allows the input of user data and then quickly outputs formidable information used in creating a plan. Every good plan will always begin with the right tools and then culminate in sound advice.
Your Retirement Plan
With the information that comes out of the calculator it is easy to decide what steps should come next. The plan is what comes next. The information will tell the user with some clarity what must be obtained and how it may be obtained for a proper and secure retirement. Most people want to retire at some point, they simply don’t know how and that is what puts the most fear in personal planning.
The Best Places to Invest
As the information is now available, it is also important for the user to have some advice on the best places to invest. After all, the information on retirement would be nothing unless the user has a place to make the data usable. With the latest tools and a good primary plan, it is always a good idea to ask a few question, but the blueprint being laid out will make the asking less likely to be controlled by the advisor. Starting with good tools puts the user in control.