Who qualifies for the Saver’s Credit
Beyond the income limits, three fixed rules apply no matter how much you earn: you must be 18 or older by the end of the year, you can’t be enrolled full-time as a student for any part of five months during the year, and you can’t be claimed as a dependent on someone else’s tax return.
How the credit percentage works
| Credit rate | Married filing jointly (2026) | Head of household (2026) | Single / MFS / QW (2026) |
|---|---|---|---|
| 50% | $48,500 or less | $36,375 or less | $24,250 or less |
| 20% | $48,501–$52,500 | $36,376–$39,375 | $24,251–$26,250 |
| 10% | $52,501–$80,500 | $39,376–$60,375 | $26,251–$40,250 |
| 0% | Above $80,500 | Above $60,375 | Above $40,250 |
Source: Internal Revenue Service
The rate is a cliff, not a gradual phase-out: one extra dollar of AGI can drop you to the next tier down. So if you’re near a threshold, lowering your AGI — say, with a pretax contribution — can be worth real money. For 2025 returns, the thresholds are lower: $79,000 (MFJ), $59,250 (head of household), and $39,500 (single/MFS/QW) at the top of the 10% band, with the 50% and 20% breakpoints also shifted down proportionally.
Which contributions count toward Form 8880
Contributions to the following count toward this credit:
- Traditional or Roth IRA
- 401(k)
- 403(b)
- SIMPLE IRA
- SARSEP
- governmental 457(b) plan
- ABLE account
Employer matching contributions don’t count, and if you or your spouse took a distribution from a retirement plan in the past few years, that can reduce or eliminate the contributions you’re allowed to claim.
Claiming both a deduction and the credit for the same contribution
You’re not limited to one tax benefit per contribution. If you contribute to a traditional IRA, you may be able to deduct that contribution and also claim the Saver’s Credit on Form 8880 for the same dollars, effectively getting two benefits from one contribution.
What’s changing: the Saver’s Match starting in 2027
Starting with contributions made in 2027, the Saver’s Credit is being replaced by the Saver’s Match, a federal contribution of up to 50% of what you save, deposited directly into your retirement account instead of reducing your tax bill. You’ll claim it using the new Form 8880-A when you file your 2027 return.
