gog8tors
Driving Instructor
With all the talk about the "payroll" deduction (AKA SS) is this a sneaky way to privatize SS? I'm so confused. Oh, and do any of the people that this is for know about it?
http://finance.yahoo.com/news/savers-credit-191654754.html
By Emily Brandon | US News – Tue, Dec 20, 2011 6:15 PM EST
6
Email
Print
Low income workers who save for retirement using a 401(k) or IRA can earn a tax credit worth up to $1,000 for individuals and $2,000 for couples in 2011 and future years.
[See How to Save for Retirement on a Low Income.]
The saver's credit can be claimed by workers whose modified adjusted gross incomes are up to $28,250 for singles, $42,375 for heads of households, and $56,500 for married couples in 2011. In 2012 those income limits will increase to $28,750 for singles, $43,125 for heads of households, and $57,500 for couples.
The first $2,000 workers contribute to an IRA, 401(k), or similar workplace retirement account can count towards the saver's credit. The credit can be used to increase your refund or reduce the tax you owe. This tax credit is available in addition to the tax deferral you get for making a traditional 401(k) and IRA contribution and any 401(k) match you get from your employer.
Consider a married couple who earned $30,000 in 2011 and contributed $1,000 to an IRA. They will be able to claim a $500 tax credit for their $1,000 IRA contribution
http://finance.yahoo.com/news/savers-credit-191654754.html
By Emily Brandon | US News – Tue, Dec 20, 2011 6:15 PM EST
6
Low income workers who save for retirement using a 401(k) or IRA can earn a tax credit worth up to $1,000 for individuals and $2,000 for couples in 2011 and future years.
[See How to Save for Retirement on a Low Income.]
The saver's credit can be claimed by workers whose modified adjusted gross incomes are up to $28,250 for singles, $42,375 for heads of households, and $56,500 for married couples in 2011. In 2012 those income limits will increase to $28,750 for singles, $43,125 for heads of households, and $57,500 for couples.
The first $2,000 workers contribute to an IRA, 401(k), or similar workplace retirement account can count towards the saver's credit. The credit can be used to increase your refund or reduce the tax you owe. This tax credit is available in addition to the tax deferral you get for making a traditional 401(k) and IRA contribution and any 401(k) match you get from your employer.
Consider a married couple who earned $30,000 in 2011 and contributed $1,000 to an IRA. They will be able to claim a $500 tax credit for their $1,000 IRA contribution