Retirement Contributions May Qualify for a Tax Credit

Did you contribute to retirement plans or an IRA for 2014? You may be eligible for a federal income tax credit. The Saver’s Credit can be taken when you make contributions to your traditional or Roth IRA as well as certain employer retirement plans. The amount you can claim varies, depending on your income, but can be as much as 50% of your contributions, up to a maximum credit of $1,000 ($2,000 if you’re married filing jointly).