Retirement COrner

Another Great Reason to Save

tax return formWouldn't you jump at the chance to reduce your annual income tax return by as much as $1,000.00? UT System and the Internal Revenue Service are offering you that chance.

The Saver's Tax Credit is available to UT System employees who:

  • Make Tax-deferred contributions to an employer-sponsored retirement plan;
  • are 18 year or older;
  • aren't full-time students; aren't claimed as a dependant on another person's tax return; and
  • meet the income limits described below.

The Saver's Credit can be taken for your contributions to either your UTSaver 403(b) Tax Sheltered Annuity or your UTSaver 457(b) deferred Compensation plan. You may even qualify if your TSA contributions are Roth (after tax). Rollover contributions aren't eligible for the Saver's Credit. Also, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA.

If you're eligible and contribute as much as $2,000.00, you could qualify for a Saver's Tax Credit of up to 50% of your contributions--$1,000 subtracted directly from your income tax payment.  See the table below for more details:

INCOME LIMITS FOR 2014 ELIGIBILITY
Credit Percentage Married, Filling a Joint Return
Head of Household All other filers
50% AGI Up to $36,000 AGI up to $27,000 Up to $18,000
20% $36,000-$39,000 $27,001-$29,250 $18,001-$19,500
10% $39,001-$60,000 $29,251-$45,000 $19,501-$30,000
0% More than $60,000 More than $45,000 More than $30,000