Low to moderate income individuals still have a chance to take advantage of the savers credit for 2011. The savers credit is a great motivator for saving for retirement.
Those who can claim the credit must meet the flowing criteria:
• Married couples filing jointly with incomes up to $56,500 in 2011;
• Heads of households with incomes up to $42,375 in 2011; and
• Married individuals filing separately and singles with incomes up to $28,250 in 2011.
The great benefit of the credit is that it allows individuals to balance off part of the first $2,000 that is contributed to a 401K or IRA.
The April 17th, 2012 tax filing deadline is also the deadline for opening an IRA. Contributions to a 401k must be made before January 1st in order to qualify.
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