Amy is single.During 2013,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

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The saver's credit, also known as the retirement savings contribution credit, is a tax credit for low- to moderate-income individuals who contribute to a retirement plan. Amy's adjusted gross income of $12,000 falls within the income limits for the credit, but since she contributed to a Roth IRA, which is funded with after-tax dollars, she is not eligible for the credit. Therefore, the maximum saver's credit she may claim is $0.

Amy Is Single