Which of the following taxpayers is most likely to qualify for the saver's credit?
A)A low AGI taxpayer who does not contribute to any qualified retirement plan.
B)A low AGI taxpayer who contributes to her employer's 401(k) plan.
C)A high AGI self-employed taxpayer.
D)A high AGI employee who does not contribute to any qualified retirement plan.To be eligible for the saver's credit a taxpayer must contribute to a qualified retirement plan (including IRAs) .Further,the credit is phased out completely for high AGI taxpayers.

Question

Quizplus · Accepted Answer

To qualify for the saver's credit, a taxpayer must contribute to a qualified retirement plan. Therefore, option A is not likely to qualify as they do not contribute to any retirement plan. Option C is also not likely to qualify as they are a high AGI taxpayer and the credit is phased out completely for them. Option D is also not likely to qualify as they do not contribute to any qualified retirement plan. Option B is the most likely to qualify as they contribute to their employer's 401(k) plan and also have a low AGI.

Which of the Following Taxpayers Is Most Likely to Qualify