Tax Tips

If you qualify, you could get a tax credit for up to half of what you contribute to a qualified retirement plan or IRA. Claim the Saver's Credit if you meet all the qualifications:

• You're age 18 or older.
• You are not a full-time student.
• You are not claimed as a dependent on someone else's return.
• Your 2011 AGI doesn't exceed $28,250 ($56,500 if Married Filing Jointly, or $42,375 for Head of Household).

The credit is offset by the amount of any distribution taken from an IRA, 401K, or retirement plan in the previous three years and up to the due date (April 19) of the 2011 return.

Related IRS Publications: 590