Low income earners

Question

Low income earners

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Low income earners may be eligible to receive a tax credit, known as the Saver's Credit, based on their contributions to an IRA. The amount of the credit is based on income level and contribution amount, and it can be worth up to $1,000 for individuals and $2,000 for couples. However, low income earners are still subject to contribution limits and early withdrawal penalties if they access their funds before age 59 ½. There is no catch-up provision for IRAs based on income level.

Low Income Earners