Which of the following taxpayers is most likely to qualify for the saver's credit?
A) A high AGI employee who does not contribute to any qualified retirement plan.
B) A high AGI self-employed taxpayer.
C) A low AGI taxpayer who contributes to her employer's 401(k) plan.
D) A low AGI taxpayer who does not contribute to any qualified retirement plan.

Question

Quizplus · Accepted Answer

The saver's credit is designed to provide an incentive for low- to moderate-income taxpayers to save for retirement. As such, a low AGI taxpayer who contributes to her employer's 401(k) plan is most likely to qualify for the saver's credit. High AGI taxpayers are generally not eligible for the credit regardless of their contribution status.

Which of the Following Taxpayers Is Most Likely to Qualify