Amy is single. During 2014, she determined her adjusted gross income was $12,000. During the year, Amy also contributed $2,500 to a Roth IRA. What is the maximum saver's credit she may claim for the year?

Question

Quizplus · Accepted Answer

The maximum saver's credit that Amy can claim is 50% of the first $2,000 contributed to a qualified retirement account, such as a Roth IRA. Since Amy contributed $2,500, only $2,000 of her contribution is eligible for the credit. 50% of $2,000 is $1,000, which is the maximum saver's credit she may claim.

Amy Is Single