Retirement Savings Contributions Credit

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Shem002
Posts: 23
Joined: Wed Nov 07, 2018 11:49 am

Retirement Savings Contributions Credit

Post by Shem002 » Sat Jan 19, 2019 3:16 pm

If I continued to contribute to 2017 roth ira contributions in calendar year 2018 am I allowed to count those contributions for 2018 Retirement Savings Contributions Credit tax filing or am I only allowed to count 2018 roth ira contributions made in in calendar year 2018?

Ex) In February 2018 I contributed $1000 to max out the remaining balance in my 2017 roth ira limit ($5,500).

jebmke
Posts: 10001
Joined: Thu Apr 05, 2007 2:44 pm

Re: Retirement Savings Contributions Credit

Post by jebmke » Sat Jan 19, 2019 3:27 pm

the contributions made in 2018 for 2017 will count toward the savings credit calculation.
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Alan S.
Posts: 8954
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Retirement Savings Contributions Credit

Post by Alan S. » Sat Jan 19, 2019 3:44 pm

Shem002 wrote:
Sat Jan 19, 2019 3:16 pm
If I continued to contribute to 2017 roth ira contributions in calendar year 2018 am I allowed to count those contributions for 2018 Retirement Savings Contributions Credit tax filing or am I only allowed to count 2018 roth ira contributions made in in calendar year 2018?

Ex) In February 2018 I contributed $1000 to max out the remaining balance in my 2017 roth ira limit ($5,500).
You cannot claim a 2018 Savers Credit for contributions made for 2017. Therefore, this contribution will not increase any Savers Credit because you already made the max 2,000 2017 contribution eligible for the credit.

Of course, you can still make a 2018 contribution up till 4/15/2019 and that will count for determining your 2018 Savers Credit.

pdavi21
Posts: 1296
Joined: Sat Jan 30, 2016 4:04 pm

Re: Retirement Savings Contributions Credit

Post by pdavi21 » Sat Jan 19, 2019 3:50 pm

Keep in mind that retirement saver's credit of 2k is rarely fully usable because it is a nonrefundable credit.
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