You’re about to complete a clear, step-by-step plan to claim the Saver’s credit using Form 8880. This guide explains who qualifies, how much you can claim in 2024, how to count your retirement savings contributions, which documents you’ll need, and how to avoid common mistakes that reduce or erase the credit. You’ll also see how the 2025 income ranges change.
By the end, you’ll know exactly how to prepare your return so you don’t leave this tax break on the table.
Who can claim the Saver’s Credit in 2024
The Saver’s credit is a nonrefundable tax credit for people who make retirement savings contributions to certain plans. Nonrefundable means it can reduce your tax bill to zero, but it can’t create a refund by itself.
To qualify in 2024, all of the following must be true:
– You’re age 18 or older.
– You’re not a full-time student.
– No one else claims you as a dependent on their tax return.
– You made qualified retirement savings contributions or elective deferrals during the year.
– Your adjusted gross income (AGI) is within the limits described below.
– Your contributions are new contributions; rollovers don’t qualify.
You must also reduce your eligible contributions by certain distributions you (and your spouse if you file jointly) received after 2020 and before your 2023 return’s due date (including extensions). These distributions can come from IRAs, ABLE accounts, and many employer plans listed later.
How much the credit is worth in 2024
The Saver’s credit equals 50%, 20%, or 10% of your eligible retirement savings contributions, up to a maximum of $2,000 per person in qualifying contributions. That makes the maximum credit $1,000 per person. For couples filing jointly, the maximum qualifying contribution is $4,000, and the maximum credit is $2,000.
Credit rates by filing status and 2024 AGI:
- Married filing jointly:
- 50% if AGI is not more than $46,000
- 20% if AGI is $46,001 – $50,000
- 10% if AGI is $50,001 – $76,500
- 0% if AGI is more than $76,500
- Head of household:
- 50% if AGI is not more than $34,500
- 20% if AGI is $34,501 – $37,500
- 10% if AGI is $37,501 – $57,375
- 0% if AGI is more than $57,375
- All others (Single, Married Filing Separately, Qualifying Surviving Spouse):
- 50% if AGI is not more than $23,000
- 20% if AGI is $23,001 – $25,000
- 10% if AGI is $25,001 – $38,250
- 0% if AGI is more than $38,250
According to analysis by VisaVerge.com, these 2024 AGI ranges and credit percentages determine whether your Saver’s credit is 50%, 20%, 10%, or 0% based on filing status and income.
What counts as eligible retirement savings contributions
Eligible contributions must be paid into qualifying plans. These include:
– Traditional IRA or Roth IRA contributions
– Elective salary deferrals into 401(k), 403(b), governmental 457(b), SEP, SIMPLE, or the federal Thrift Savings Plan
– Voluntary after-tax employee contributions to a qualified retirement plan (as defined in section 4974(c), including the Thrift Savings Plan) or a 403(b) plan
– Contributions to a 501(c)(18)(D) plan
– Contributions to an ABLE account by the designated beneficiary, if made before January 1, 2026
Important exclusions:
– Contributions designated under section 414(h)(2) are treated as employer contributions and do not qualify.
– Rollover contributions don’t qualify for the credit.
Required reduction for distributions:
– Reduce your eligible contributions by total distributions you (and your spouse, if filing jointly) received after 2020 and before the due date (including extensions) of your 2023 return from:
– Traditional or Roth IRAs, or ABLE accounts
– 401(k), 403(b), governmental 457(b), 501(c)(18)(D), SEP, SIMPLE, or the federal Thrift Savings Plan
– Qualified retirement plans under section 4974(c)
The form you need and where to get it
You calculate and claim the credit using Form 8880 — Credit for Qualified Retirement Savings Contributions. The instructions on the form guide you through AGI limits, distribution reductions, and the 50%/20%/10% rates.
- Download
Form 8880from the IRS: About Form 8880 - Official Saver’s credit overview: Retirement Savings Contributions Credit (Saver’s Credit)
Use Form 8880 to figure the exact credit and attach it to your tax return.
Step-by-step: How to claim the Saver’s Credit
1) Check your basic qualifications
– Confirm you’re 18 or older, not a full-time student, and not claimed as a dependent.
– Make sure you made eligible retirement savings contributions during the year.
2) Identify all qualifying contributions
– List IRA contributions and elective deferrals to plans like 401(k), 403(b), and governmental 457(b).
– Include voluntary after-tax employee contributions and contributions to 501(c)(18)(D) plans.
– If you’re the designated beneficiary of an ABLE account and made your own contributions (before 1/1/2026), include those.
3) Subtract any disqualifying amounts
– Exclude rollovers—they don’t count.
– Exclude contributions treated as employer contributions under section 414(h)(2).
4) Apply the distribution reduction rule
– Gather records of distributions you and your spouse (if MFJ) took after 2020 and before your 2023 return’s due date (including extensions).
– Reduce your eligible contributions by the total of those distributions.
5) Cap your contribution amount
– After reductions, apply the cap:
– $2,000 max per person in eligible contributions can count for the credit.
– $4,000 max if married filing jointly.
– This capped amount is used to compute the credit.
6) Find your AGI and filing status
– Use your AGI and filing status to determine whether you’re in the 50%, 20%, 10%, or 0% band.
7) Calculate your credit on Form 8880
– Enter your final eligible contribution amount (after reductions and caps).
– Multiply by your credit rate (50%, 20%, or 10%).
– Credit limits: $1,000 per person or $2,000 married filing jointly.
8) Attach Form 8880 to your tax return
– Keep proof of contributions, plan statements, and distribution records with your files.
– File your return with the completed form.
Documents and information to gather
Before starting Form 8880, collect:
– Plan statements showing qualified contributions:
– IRA statements (traditional or Roth)
– 401(k), 403(b), governmental 457(b), SEP, SIMPLE, or Thrift Savings Plan deferral records
– Records for voluntary after-tax employee contributions and 403(b) plans
– 501(c)(18)(D) plan contribution records
– ABLE account contribution records if you’re the designated beneficiary (and contributions were made before 1/1/2026)
– Records of any distributions received after 2020 and before the due date (including extensions) of your 2023 return
– Your filing status and AGI from your return
– A clean copy of Form 8880: About Form 8880
Having this ready makes the form quick to finish and helps prevent mistakes that could shrink your credit.
Timing, deadlines, and costs
- Employer plan contributions generally follow the calendar year for the plan.
- IRA contributions can often be made up to the tax filing deadline for the prior year—check your return year rules and plan documents.
- The Saver’s credit is claimed on the return for the year you made the contributions.
- The form itself has no fee. If you use a tax preparer or software, you may pay service or filing fees, but the IRS does not charge to process
Form 8880.
Reminder: Because the credit is nonrefundable, it only reduces your tax to zero; it doesn’t produce a refund by itself.
Real-world example from the rules
Jill works at a retail store, is married, and earned $43,000 in 2024. Jill’s husband was unemployed. Jill contributed $1,000 to her IRA for 2024. After deducting her IRA contribution, the AGI on their joint return is $42,000.
Under the 2024 chart, married filing jointly with AGI not more than $46,000 gets the 50% rate. Jill may claim a 50% credit of $500 for her $1,000 IRA contribution.
This example shows how even a modest IRA contribution can deliver a strong tax credit for households in the 50% band.
Common pitfalls that reduce or erase the credit
Avoid these frequent mistakes:
– Counting rollovers as contributions — rollovers do not qualify.
– Forgetting the distribution reduction rule — distributions after 2020 and before your 2023 return deadline must reduce eligible contributions.
– Assuming employer “pick-up” contributions count — section 414(h)(2) contributions are employer contributions and don’t qualify.
– Missing the age, student, or dependent rules — you must be 18+, not a full-time student, and not claimed as a dependent.
– Overstating the contribution for the credit — only $2,000 per person counts.
– Using the wrong AGI band — double-check filing status and the 2024 AGI ranges.
– Expecting a refund from this credit alone — it’s nonrefundable.
Careful review of Form 8880 and your supporting records will help prevent these issues.
Detailed coverage of plans and special cases
Eligible plans include:
– IRAs (traditional and Roth)
– Employer plans such as 401(k), 403(b), governmental 457(b), SEP, SIMPLE, and the federal Thrift Savings Plan
– Voluntary after-tax employee contributions to qualified plans (section 4974(c)) and 403(b) plans
– 501(c)(18)(D) plans
– ABLE accounts, only when the designated beneficiary makes the contribution, and only for contributions made before January 1, 2026
Ineligible amounts:
– Rollovers are not eligible.
– Contributions treated as employer contributions under section 414(h)(2) don’t count.
Distribution reduction rule:
– Reduce eligible contributions by distributions received after 2020 and before the due date (including extensions) of your 2023 return from any listed plans. This applies to both spouses if you file jointly.
These details can materially change the size of your credit, especially if you withdrew from accounts in recent years.
2025 income ranges for planning ahead
AGI ranges for 2025 rise due to cost-of-living adjustments. While you’ll claim the Saver’s credit for 2024 using the 2024 chart, the 2025 numbers help with planning:
- Married filing jointly:
- 50% if AGI is not more than $47,500
- 20% if AGI is $47,501 – $51,000
- 10% if AGI is $51,001 – $79,000
- 0% if AGI is more than $79,000
- Head of household:
- 50% if AGI is not more than $35,625
- 20% if AGI is $35,626 – $38,250
- 10% if AGI is $38,251 – $59,250
- 0% if AGI is more than $59,250
- All others:
- 50% if AGI is not more than $23,750
- 20% if AGI is $23,751 – $25,500
- 10% if AGI is $25,501 – $39,500
- 0% if AGI is more than $39,500
These ranges can help you plan contributions to stay within a desired band next year.
Practical scenarios to apply the rules
Quick examples:
– Married filing jointly with AGI ≤ $46,000 (2024):
– Up to $4,000 combined contributions count.
– 50% rate → maximum $2,000 credit.
– Head of household with AGI $36,000 (2024):
– 20% band.
– Up to $2,000 counts → maximum $400 credit.
– Single with AGI $28,000 (2024):
– 10% band.
– Up to $2,000 counts → maximum $200 credit.
Always adjust for distributions after 2020 and before your 2023 return’s due date; they reduce eligible contribution amounts.
Quick checklist before you file
- I made qualifying retirement savings contributions.
- I’m 18 or older, not a full-time student, and not claimed as a dependent.
- I didn’t include rollovers as contributions.
- I reduced eligible contributions by distributions taken after 2020 and before the due date (including extensions) of my 2023 return.
- I used the correct AGI range and filing status to find the 50%, 20%, or 10% rate.
- I capped contributions at $2,000 per person ($4,000 MFJ) for the credit calculation.
- I completed and attached
Form 8880to my return: About Form 8880. - I kept all contribution and distribution records with my files.
FAQs — straightforward answers
- Is the Saver’s credit refundable?
- No. It’s nonrefundable and can reduce your tax to zero but won’t generate a refund on its own.
- What if I only contributed $500 to my IRA?
- Your credit equals the eligible contribution times the credit rate. In the 50% band, a $500 contribution yields a $250 credit.
- Can I claim the credit for a rollover?
- No. Rollovers are not eligible contributions.
- Do employer “pick-up” contributions count?
- No. Contributions under section 414(h)(2) are employer contributions and don’t qualify.
- I took an IRA distribution in 2021. Does it affect my 2024 credit?
- Yes. Distributions after 2020 and before your 2023 return due date reduce eligible contributions used to figure the 2024 credit.
- Can ABLE account contributions qualify?
- Yes, but only if the designated beneficiary makes the contribution and only for contributions made before January 1, 2026.
Putting it all together
The Saver’s credit rewards retirement savings contributions made by working people whose AGI falls within set ranges. For 2024, you can get a 50%, 20%, or 10% credit on up to $2,000 per person in eligible contributions, with a maximum credit of $1,000 per person. Couples filing jointly can count up to $4,000 for a maximum $2,000 credit.
Because the credit is nonrefundable, it’s most helpful when you owe tax—lowering it dollar-for-dollar. The fastest way to secure the credit is to gather your statements, check the distribution reduction rule, and complete Form 8880 with your return.
IRS resources:
– Retirement Savings Contributions Credit (Saver’s Credit)
– About Form 8880
Follow the steps in this guide, and you’ll be set to claim the credit you’ve earned from saving for your future.
This Article in a Nutshell
The Saver’s credit provides a nonrefundable tax credit for qualified retirement contributions made in 2024. Eligible taxpayers—age 18 or older, not full-time students, and not claimed as dependents—can claim 50%, 20%, or 10% of eligible contributions, up to $2,000 per person (maximum credit $1,000 per person; $2,000 for married filing jointly). Qualifying contributions include traditional and Roth IRA contributions, elective deferrals to employer plans (401(k), 403(b), governmental 457(b)), certain after-tax contributions, 501(c)(18)(D) plans, and ABLE contributions by the designated beneficiary made prior to January 1, 2026. Rollovers and contributions treated as employer pick-ups under section 414(h)(2) do not qualify. You must reduce eligible contributions by distributions received after 2020 and before your 2023 return’s due date. Use Form 8880 to compute the credit, attach it to your return, and retain contribution and distribution records to avoid errors. 2025 AGI ranges rise slightly for planning purposes.
