Tax Break for Savers in Retirement Plans

As a financial advisor, you may be looking to motivate retirement plan sponsors and participants to stay the course. Here's a little extra motivation: the Saver's Credit.

Saving in a 401(k) plan can be a great way for low and moderate income employees to save on taxes - and they may be eligible for the Saver's Credit. The maximum Saver's Credit is $1,000 ($2,000 for married couples), and is taken in addition to any other tax benefits available to people who save in qualified retirement plans or traditional IRAs.

The Saver's Credit can provide additional motivation for companies looking to boost plan participation. It's an effective way to help eligible employees save for the future, and receive a tax benefit.

As always, I welcome the opportunity to help you grow your retirement book of business. If you would like to discuss a prospective client or would like to request a proposal, please give me a call.

(Source- TransAmerica, Link- http://www.irs.gov/newsroom/article/0,,id=200742,00.html)