There’s still time for some retirement savers to claim an extra tax write-off

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A lesser-known retirement savings incentive may make it easier for some Americans to set aside more money, and there’s still time to qualify for 2021.

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You can claim up to 50% of retirement contributions for a maximum credit of $1,000 for single filers and married couples filing together may receive $2,000.

However, the saver's credit is non-refundable, meaning it may only reduce or eliminate levies owed, making it difficult to claim for those with little to no tax liability, which is common among low-income filers. In 2020, 33% of private industry employees didn't have access to workplace retirement plans, according to theRight now, the system does not give everybody equal incentives to save.While many workers qualify for an IRA, low-income Americans are less likely to have an account, a Tax Policy CenterAnd it may be difficult for some lower earners to afford the contributions needed to qualify for the saver's credit, explained John Power, a Walpole, Massachusetts-based CFP with Power Plans.

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