Qualifying for the Saver’s Credit
You qualify for the Saver’s Credit if you meet all of the following requirements:
- Make an eligible contribution: Contributions made with new money during the tax year. Rollovers do not qualify.
- Meet the adjusted gross income (AGI) limits: Refer to the chart below to determine IRS income limits for your filing status.
- Meet the eligibility requirements:
- You’re 18 or older by the end of the tax year.
- You weren’t a full-time student for any part of five calendar months during the year.
- No one else claims you as a dependent on their tax return.
Saver’s Credit rates for 2026
For the 2026 tax year, the IRS sorts filers into four rate tiers—50%, 20%, 10% or 0%—based on AGI and filing status:
| Credit rate | Married filing jointly | Head of household | All other filers |
|---|---|---|---|
| 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% (not eligible) | More than $80,500 | More than $60,375 | More than $40,250 |
Source: Internal Revenue Service 1, 2
Eligible retirement accounts
Contributions you make (excludes employer matching contributions) to these accounts are generally eligible:
- Traditional or Roth IRA
- 401(k), 403(b), 501(c)(18)(D), or governmental 457(b) plan
- SIMPLE IRA or SARSEP
- An ABLE account, if you’re the designated beneficiary
How to claim the Saver’s Credit
Form 8880, Credit for Qualified Retirement Savings Contributions, is used to determine the credit amount. You’ll carry the result to Schedule 3 of Form 1040, 1040-SR, or 1040-NR when you file. See the Form 8880 instructions for the full worksheet. Because this is a nonrefundable credit, it can only reduce or eliminate the tax you owe on your return.
The Saver’s Match: What changes in 2027
The Saver’s Match, created by the SECURE 2.0 Act, largely replaces the Saver’s Credit starting with 2027 tax returns. Instead of a credit that only reduces the tax you owe, the Saver’s Match deposits a federal matching contribution—up to 50% of your contribution, capped at $1,000 per person—directly into your retirement account.
Unlike the current nonrefundable tax credit, eligible taxpayers may receive the match even if they owe no federal income tax.
