This Saver’s Tax Credit article has been updated for the 2026 and 2027 tax years. The Saver’s Credit (aka the ‘Retirement Savings Contribution Credit’) will undergo a big change in 2027, as it will be replaced for retirement contributions by the new Saver’s Match. This article will cover both the old (2026 tax year) Saver’s Credit as well as the SECURE 2.0 Act updates that begin in 2027 related to ABLE Accounts.
What is the Saver’s Credit?
Through the end of 2026, the Saver’s Credit is a highly advantageous tax credit that the IRS offers to incentivize low and moderate income taxpayers to make retirement contributions to an IRA, 401K, 403B, 457B, or any other IRS recognized retirement account.
What is nice about the Saver’s Credit is that it is an actual tax credit – not merely a tax deduction. If you’re not sure how the two differ, a tax deduction simply subtracts the value from your taxable income and you pay taxes on the remaining taxable income. A tax credit, on the other hand, actually gives you the entire dollar value back or subtracts the value from the taxes you owe – making it far more valuable monetarily than a deduction. In the case of the Saver’s Credit, it is non-refundable, meaning it can only be subtracted from the taxes you owe, possibly down to zero, but it can’t be refunded to you.
Starting in 2027, the Saver’s Credit changes significantly with the SECURE 2.0 Act. For retirement contributions, the Saver’s Credit is effectively replaced by the new Saver’s Match, which is a government matching program for retirement account contributions – and not a tax credit. Moving forward, only qualified ABLE Account contributions are eligible for the Saver’s Credit. ABLE accounts are tax-advantaged savings and investment account for individuals with disabilities and their families, established under Section 529A of the Internal Revenue Code.
2026 Maximum Income Level for the Saver’s Credit
The AGI (adjusted gross income) limit to qualify for the Saver’s Credit in 2026 is:
- $40,250 for single filers and married individuals filing separately
- $60,375 for heads of household
- $80,500 for married couples filing jointly
2027 Maximum Income Level for the Saver’s Credit
The AGI (adjusted gross income) limit to qualify for the Saver’s Credit in 2027 is:
- $41,500 for single filers and married individuals filing separately
- $62,250 for heads of household
- $83,000 for married couples filing jointly
How Much is the Saver’s Credit?
The short answer is that it depends on your income level and your contribution amount. It will take a small bit of effort to determine how much of a credit you will receive, but don’t let that deter you – if you are eligible, the result is free money!
The absolute most you could receive in a given year is:
- 2026: $1,000 on a retirement contribution of $2,000 per eligible individual
- 2027: $1,050 on an ABLE account contribution of $2,100 per eligible beneficiary (indexed to inflation)
In order to figure out what kind of credit you are eligible to receive, you will have to fill out IRS form 8880 (PDF), as the credit phases out at certain income levels. Or check out the contribution tables below. Once you figure out the amount of the credit from form 8880, add it to Form 1040 (PDF).
It’s important to note that starting in 2027 with ABLE account contributions, only beneficiaries are eligible to receive the Saver’s Credit (versus other contributors).
The best tax software programs should cover form 8880 automatically, but it’s worth verifying in order to make sure you get the credit, if you are eligible. Also, it’s worth knowing what the income level thresholds for the various credit percentages in the tables below, in order to determine eligibility.
2026 Saver’s Credit Amount by Income Level
| Credit Amount: | Married Filing Jointly: | Head of Household: | All Other Filers: |
|---|---|---|---|
| 50% of your contribution | AGI less than $48,500 | AGI less than $36,375 | AGI less than $24,250 |
| 20% of your contribution | $48,500 - $52,500 | $36,375 - $39,375 | $24,250 - $26,250 |
| 10% of your contribution | $52,501 - $80,500 | $39,376 - $60,375 | $26,251 - $40,250 |
| 0% of your contribution | AGI greater than $80,500 | AGI greater than $60,375 | AGI greater than $40,251 |
2027 Saver’s Credit Amount by Income Level
| Credit Amount: | Married Filing Jointly: | Head of Household: | All Other Filers: |
|---|---|---|---|
| 50% of your contribution | AGI less than $50,000 | AGI less than $37,500 | AGI less than $25,000 |
| 20% of your contribution | $50,000 - $54,000 | $37,500 - $40,500 | $25,000 - $27,000 |
| 10% of your contribution | $54,000 - $83,000 | $40,500 - $62,250 | $27,000 - $41,500 |
| 0% of your contribution | AGI greater than $83,000 | AGI greater than $62,250 | AGI greater than $41,500 |
Saver’s Credit Eligibility
The following individuals are not eligible for the Saver’s credit:
- Those under age 18.
- Full-time students (enrolled as full-time for 5 months and over in a calendar year).
- Those claimed as dependent on another person’s return.
- Those at income levels above the aforementioned limits.
Starting in 2027: only beneficiaries are eligible to receive the Saver’s Credit (versus other contributors).
Can you Claim Both the Earned Income Tax Credit and the Saver’s Credit?
Yes, the Earned Income Credit (EITC) and the Saver’s Credit can be simultaneously claimed.
Could you Claim Both the Saver’s Credit and the Saver’s Match in 2027?
Starting in 2027, it will technically be possible to get both the Saver’s Credit and Saver’s Match. However, you would not receive both for the same contribution. As noted above, the Saver’s Credit is only for eligible ABLE account contributions, while the Saver’s Match is for eligible retirement account contributions (e.g. 401K, IRA, etc.).
Saver’s Credit Discussion:
- Have you ever claimed the Retirement Savings Contribution Credit (Saver’s Credit)?
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