- April 2008 > Retirement Corner
In addition to the advantages of pre-tax contributions, a tax credit is also available to some employees who contribute to the UTSaver TSA or UTSaver DCP. The Saver’s Credit can be claimed on your tax return for up to the first $2,000 in contributions to either of the voluntary retirement programs when you meet the qualifications illustrated below.
Saver’s Credit Income Levels for 2008:
| Credit % for contributions up to $2,000 | Single Filers | Head of Household | Joint Filers |
|---|---|---|---|
| 50% of contribution | Under $16,000 | Under $24,000 | Under $32,000 |
| 20% of contribution | $16,001-$17,250 | $24,000-$25,875 | $32,000-$34,500 |
| 10% of contribution | $17,251-$26,500 | $25,876-$39,750 | $34,501-$53,000 |
| Credit not available | Over $26,500 | Over $39,750 | Over $53,000 |
To verify if you are eligible to take advantage of the Saver’s Credit, contact your retirement provider or tax advisor. The Saver’s Credit is claimed using IRS Form 8880.
Remember, you can enroll in either the UTSaver TSA or UTSaver DCP at anytime. Visit www.utretirement.utsystem.edu for more details or send us an email at benefits@utsystem.edu. Help is just a click away.
If you would like a specific topic discussed or have a question you would like answered in a future issue of this newsletter, please send your suggestions to benefits@utsystem.edu.
UT System Employee Benefits Website: www.utsystem.edu/benefits/
UT System Retirement Programs Website: www.utretirement.utsystem.edu
Your Local Benefits Office: www.utsystem.edu/benefits/contacts.asp#1