Saver’s Credit Calculator 2025

What this calculator does

The Saver’s Credit is a federal tax credit designed to encourage low- and moderate-income taxpayers to save for retirement through accounts such as a 401(k), 403(b), 457 plan, SIMPLE IRA, or traditional/Roth IRA. The credit rate is determined by your filing status and AGI.

This calculator estimates your potential credit using 2025 income thresholds and contribution limits. For official eligibility rules and definitions, see the IRS Saver’s Credit explanation. IRS Saver’s Credit Fidelity also provides a clear explanation of how retirement contributions affect taxes. Fidelity overview

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How the Saver’s Credit is estimated

Step 1: Determine eligible contributions

Eligible contributions generally include amounts you contribute to IRAs and employer-sponsored retirement plans during the tax year. The credit applies to up to $2,000 of contributions per person.

Step 2: Apply income-based credit rates

Depending on your filing status and AGI, the IRS applies a 50%, 20%, or 10% credit rate. Income above the threshold results in no credit. This calculator applies those tiered rates using standard IRS methodology.

Step 3: Nonrefundable credit limitation

The Saver’s Credit is nonrefundable. It can reduce your tax to zero, but it cannot create or increase a refund. NerdWallet provides a straightforward explanation of how nonrefundable credits work. NerdWallet explanation

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Disclaimer: This calculator provides estimates for educational purposes only and does not constitute tax advice. Final eligibility and credit amounts depend on your complete tax return.