Saver's Credit from the IRS

According to the Internal Revenue Service, a saver’s credit is available to:

• Married individuals filing separately and single with incomes up to $27,750 for 2009
• Married couples, filing jointly, with incomes up to $55,000 for 2009
• Head of Household with incomes up to $41,625 for 2009

To be eligible for the credit you must be at least age 18, not be a full-time student, and cannot be claimed as a dependent on another person’s return. You may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly) if you make eligible contributions to a qualified IRA, 401(k) and certain other retirement plans. The amount of the credit is determined by your filing status, your adjusted gross income, and your other retirement contributions.