A New 'Saver's Credit' Makes Its Debut This Year
Wall Street Journal (01/02/02) p.A1

An income-tax credit for low- and middle-income taxpayers outlined in the 2001 tax law is set to make its debut this year. Among other things, the credit helps to offset the expense of the first $2,000 contribution taxpayers make to their IRA or 401(k) plans. The saver's credit can be as high as half of the taxpayer's contributions, with a maximum per-person credit of $1,000 a year, or $2,000 for a married couple filing jointly. J. Mark Iwry, former Treasury benefits tax counsel who helped draft the credit, says the saver's credit will "help employers meet their 401(k) nondiscrimination tests," while "allowing more pretax 401(k) saving by higher-paid employees."


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