Tax-Cut Mirage Kiplinger's Personal Finance (07/02) Vol. 30, No. 15 p.92; McCormally, Kevin
Congress is offering low-income Americans a deal that seems too good to be true: a 50 percent tax credit on the first $2,000 placed in an IRA or 401(k). In order for a single person to qualify for the top credit, however, the adjusted gross income must be $15,000 or less. Workers with higher incomes receive even smaller credits, and the credit is not available to full-time students, dependents, or people under the age of 18.