Articles on Incentives and Reasons to Save

• The Saver’s Credit- an Often Overlooked Retirement Savings Benefit:An overview of the Saver's Credit . Low income earners are least likely to add savings to retirement accounts as they usually have limited disposable income. However, these individuals may be eligible to receive a nonrefundable credit for contributions to their retirement accounts, thereby lessening the financial impact of the contributions. This nonrefundable credit is referred to as the saver’s tax credit (saver’s credit), which can reduce the taxpayer’s federal income tax on a dollar-for-dollar basis.

• Active Participant Status–Can You Deduct Your IRA Contribution?:There is much confusion about the definition of an active participant and how it affects an individual’s ability to claim a tax deduction for a contribution to a Traditional IRA.  While some of the requirements for being an active participant are clearly defined, others are not. Consequently, individuals often claim deductions for their contributions when they are not eligible to do so, only for the deduction to be denied by the IRS.