Realizing that providing for a comfortable retirement is up to them,Jim and Julie commit to making regular contributions to their IRAs,beginning this year.Consequently,they each make a $2,000 contribution to their traditional IRA.If their AGI is $37,000 on their joint return,what is the amount of their credit for certain retirement plan contributions?

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The Saver's Credit allows a credit of up to 50% of contributions to retirement accounts for low to moderate-income earners. With an AGI of $37,000, Jim and Julie qualify for a 10% credit rate on their $4,000 total contribution, resulting in a $400 credit.

Realizing That Providing for a Comfortable Retirement Is Up to Them,Jim