The retirement savings contributions credit, often referred to as the Saver's Credit, is a nonrefundable tax credit that incentivizes low- to moderate-income individuals to save for retirement. This credit allows eligible taxpayers to reduce their tax liability by a percentage of their contributions to qualified retirement accounts, such as IRAs and 401(k)s. It aims to encourage savings among those who may need it the most, thus enhancing retirement security for individuals with limited financial means.
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