What is the Saver's Credit and how do I qualify?

The Saver's Credit (Retirement Savings Contributions Credit) rewards lower- and moderate-income workers for saving in a 401(k), IRA, or similar plan. It's worth 10%, 20%, or 50% of up to $2,000 contributed ($4,000 if married filing jointly), so up to $1,000 per person off your tax bill. The 50% rate, the most valuable, applies only at the lowest income tiers; the credit phases out entirely above 2025 AGI of roughly $39,500 single, $59,250 head of household, and $79,000 married filing jointly. You must be 18 or older, not a full-time student, and not claimed as a dependent. Because it's a credit on top of the usual tax deferral, it effectively doubles the reward for saving. Even a modest IRA contribution can trigger it, so it's worth checking if your income is in range.