Saver's Credit could get you more than $225,000 in FREE retirement money
AMERICANS may be able to get more than $225,000 in free retirement money, just by claiming the saver's credit.
If you're a married couple that are eligible for full credit, and claim it for 30 years, you could rake in nearly a quarter of a million dollars for free.
The way the tax credit works is that you have to invest in an eligible retirement account and receive a credit or either 10, 20 or 50 percent of the amount you have contributed.
There is a maximum contribution of $2,000 for single filers or $4,000 for married people who are filing together.
A low enough income tax means that you can receive 50 percent credit.
If you qualify for this amount, and you and your spouse invest a combined $4,000, you will receive a $2,000 reduction of the amount owed to the IRS.
This means that $2,000 is being given to you for free from the government, straight into your retirement fund.
If you rake in the lump sum every year for 30 years, and invest it in a way that you can earn an average eight percent annual return, the savings can turn into a huge $226,566.
Alongside this, you would also have the $450,000 that you have invested yourselves for the past three decades.
However, the Saver's Credit is only available to a limited subset of residents.
Joint filers hoping to secure the 50 percent credit would have to have an adjusted gross income under $39,500 as of 2021.
A married couple earning up to $65,000 would be eligible for 10 percent.
Those who are eligible for the Saver's Credit should act fast so that they can start cashing in and building up their free money.
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