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How to Qualify for Retirement Savings Tax Breaks

January 4, 2017

tax-form-3Most workers can save in a 401(k) account at work regardless of how much they earn. But when it comes to saving in IRAs, you might not be eligible for the tax perks if your income exceeds a certain amount. There are also income limits to claim the saver’s credit. Here’s a look at the retirement tax breaks you might qualify for, depending on your 2017 income.

Roth IRA: Less than $133,000 for individuals and $196,000 for couples. The after-tax dollars you contribute to a Roth IRA grow without being taxed, and withdrawals after age 59 1/2 from an account at least five years old could be tax-free. Savvy investors might never have to pay income tax on any of the investment growth in their Roth IRA.

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