Amy is single. During 2020, she determined her adjusted gross income was $12,000. During the year, Amy also contributed $1,500 to a Roth IRA. What is the maximum saver's credit she may claim for the year?
A)$750.
B)$1,000.
C)$1,500.
D)$0.

Question

Quizplus · Accepted Answer

The Saver's Credit, also known as the Retirement Savings Contributions Credit, is designed to encourage low- and moderate-income individuals to save for retirement. For a single filer like Amy, with an adjusted gross income of $12,000 in 2020, she falls within the income range that qualifies for a 50% credit rate on her contribution to a Roth IRA. Therefore, the maximum credit she can claim is 50% of her $1,500 contribution, which equals $750.

Amy Is Single