How much is it worth?
The credit equals 10%, 20% or 50% of up to $2,000 of eligible contributions ($4,000 if married filing jointly), depending on your AGI and filing status. That means the maximum credit is $1,000 per person ($2,000 for a couple). The credit is nonrefundable, so it can reduce your tax to zero but not produce a refund beyond that.
Income limits
The AGI limits are adjusted yearly. For 2025, the credit was generally available to single filers with AGI up to $39,500, heads of household up to $59,250, and married couples filing jointly up to $79,000. Verify the exact tiers in the IRS Form 8880 instructions for your year.
Who qualifies?
- You are 18 or older.
- You are not a full-time student.
- You can’t be claimed as a dependent on someone else’s return.
- Your AGI is within the limit.
Which contributions count?
- Contributions to a traditional or Roth IRA.
- Elective deferrals to a 401(k), 403(b), 457(b), SIMPLE IRA or SEP.
- Certain voluntary after-tax employee contributions.
- Contributions to an ABLE account by the designated beneficiary, in some cases.
Distributions you took from retirement accounts during the testing period (the two prior years, the year itself, and up to the filing deadline) can reduce the contributions that count.
How to claim it
Complete Form 8880, Credit for Qualified Retirement Savings Contributions, and carry the result to your Form 1040. Tax software will prompt you if it detects retirement contributions and your income is in range.
Deadline for contributions
You can make IRA contributions for a tax year until the filing deadline (April 15) of the following year and still count them for that year, which makes it possible to qualify after the year ends. Employer plan deferrals generally must be made by December 31.
Example
A single filer with AGI under the 50% tier who contributes $1,500 to an IRA could receive a credit of 50% of $1,500, or $750, if all other conditions are met and they owe at least that much tax. (Illustration; verify the current thresholds.)
Looking ahead
Retirement legislation has scheduled changes to this credit in future years, including conversion into a matching contribution deposited into your retirement account. Check IRS guidance for the effective date and details.
Common reasons people miss the saver’s credit
- They assume the credit only applies to IRAs. Employer plan deferrals count too.
- They didn’t know that IRA contributions made up to the filing deadline can count for the prior year.
- Their software didn’t prompt them because they entered retirement contributions as a pre-tax payroll item with no separate retirement section.
- They’re a full-time student or claimed as a dependent, which disqualifies the credit.
If your income is in range, ask your tax software or preparer to check Form 8880, or review the IRS instructions yourself.
Frequently asked questions
What is the maximum saver’s credit?
$1,000 per person ($2,000 for joint filers), which is 50% of up to $2,000 in contributions, if your income is low enough.
Can students claim the saver’s credit?
Generally no. Full-time students are not eligible.
Is the saver’s credit refundable?
No. It can reduce your tax to zero but doesn’t create a refund by itself.
Official sources
- IRS Topic 610: Retirement savings contributions credit
- IRS: About Form 8880 (Saver’s Credit)
- IRS Publication 17: Your Federal Income Tax
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.