March 2016
Intermediate to advanced
700 pages
144h 54m
English
Content preview from Principles of Risk Management and Insurance, 13th EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Saver’s Credit
To encourage low- to moderate-income earners to save for retirement, a tax credit called a Saver’s Credit (Retirement Savings Contributions Credit) is available. Unlike tax deductions that reduce the amount of taxable income, tax credits reduce the actual amount of tax owed on a dollar-for-dollar basis up to some maximum limit. You are eligible for the tax credit if you are age 18 or older, not a full-time student, and not claimed as a dependent on another person’s tax return.
The tax credit is a percentage of your contributions to a traditional or Roth IRA, 401(k), SIMPLE IRA, 403(b), 501(c), and certain other employer-sponsored retirement plans. Depending on your adjusted gross income (AGI), the credit is 50 percent, 20 percent, ...
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