Daily Tax Tip: The IRS allows a credit for a percentage (50%, 20%, or 10%) of up to $2,000 of contributions you make to an employer elective deferral plan or IRA. You must be 18 or older to claim the credit. In addition, you cannot be a full-time student or be claimed as a dependent on someone elses return. Any distribution taken from a retirement plan in the prior two years, in the current year, or anytime up until the due date of the current years return will reduce the credit. The credit is in addition to any deduction or exclusion for the contribution.
Posted on: Fri, 24 Jan 2014 22:25:23 +0000
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