2018 Saver's Credit Income Limit
For 2018, the Saver's Credit Income Limit figures are $38,000 (Maximum AGI for the 50% credit rate, married taxpayers filing a joint return), $41,000 (Maximum AGI for the 20% credit rate, married taxpayers filing a joint return), $63,000 (Maximum AGI for the 10% credit rate, married taxpayers filing a joint return) and 10 more figures below.
| Item | Married taxpayers filing a joint return | Taxpayers filing as head of household | All other taxpayers |
|---|---|---|---|
| Maximum AGI for the 50% credit rate | $38,000 | $28,500 | $19,000 |
| Maximum AGI for the 20% credit rate | $41,000 | $30,750 | $20,500 |
| Maximum AGI for the 10% credit rate | $63,000 | $47,250 | $31,500 |
Effective 2018-01-01Source: Notice 2017-64 (IRS)Verified 2026-09-03
Highest-tier applicable percentage, Middle-tier applicable percentage, Lowest non-zero-tier applicable percentageSource: United States Code (2018 edition), Title 26 Section 25B (Office of the Law Revision Counsel)Verified 2026-09-03
Maximum eligible contribution per personSource: Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)Verified 2026-09-03
Compared with 2017
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Maximum AGI for the 50% credit rate, married taxpayers filing a joint return | $37,000 | $38,000 | +$1,000 (+2.7%) |
| Maximum AGI for the 20% credit rate, married taxpayers filing a joint return | $40,000 | $41,000 | +$1,000 (+2.5%) |
| Maximum AGI for the 10% credit rate, married taxpayers filing a joint return | $62,000 | $63,000 | +$1,000 (+1.6%) |
| Maximum AGI for the 50% credit rate, taxpayers filing as head of household | $27,750 | $28,500 | +$750 (+2.7%) |
| Maximum AGI for the 20% credit rate, taxpayers filing as head of household | $30,000 | $30,750 | +$750 (+2.5%) |
| Maximum AGI for the 10% credit rate, taxpayers filing as head of household | $46,500 | $47,250 | +$750 (+1.6%) |
| Maximum AGI for the 50% credit rate, all other taxpayers | $18,500 | $19,000 | +$500 (+2.7%) |
| Maximum AGI for the 20% credit rate, all other taxpayers | $20,000 | $20,500 | +$500 (+2.5%) |
| Maximum AGI for the 10% credit rate, all other taxpayers | $31,000 | $31,500 | +$500 (+1.6%) |
| Highest-tier applicable percentage | 50% | 50% | +0% (+0.0%) |
| Middle-tier applicable percentage | 20% | 20% | +0% (+0.0%) |
| Lowest non-zero-tier applicable percentage | 10% | 10% | +0% (+0.0%) |
| Maximum eligible contribution per person | $2,000 | $2,000 | +$0 (+0.0%) |
Maximum AGI for the 50% credit rate
Maximum AGI for the 20% credit rate
Maximum AGI for the 10% credit rate
$19,000$63,000
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Taxpayers claiming the Retirement Savings Contributions Credit (Saver’s Credit) for the 2018 tax year.
What changed this year, and why
For 2018, the maximum adjusted gross income limits for the Retirement Savings Contributions Credit (Saver’s Credit) are $63,000 for married taxpayers filing a joint return, $47,250 for taxpayers filing as head of household, and $31,500 for all other taxpayers.
Common questions
- What are the income limits for the Saver's Credit in 2018?
- For 2018, the maximum adjusted gross income to qualify for the Saver's Credit is $63,000 for married taxpayers filing jointly, $47,250 for heads of household, and $31,500 for all other taxpayers.
Every amount on this page is a published figure rather than yours. The Saver's Credit calculator for a joint return takes the number you enter and works it out against them, showing which published figure it used.
Three things that disqualify you even under the income limit
Even if your adjusted gross income is within the limit, you are barred from claiming the Saver's Credit if any one of three conditions applies to the person who made the retirement contribution. That person must not have been born after January 1, 2001, must not be claimed as a dependent on another taxpayer's 2018 return, and must not have been a student during any part of five calendar months in 2018. Being a student includes enrollment as a full-time student at a technical, trade, or mechanical school, or taking a full-time, on-farm training course offered by a school or government agency. It does not include on-the-job training, correspondence schools, or internet-only courses. These disqualifications apply to each individual who made a contribution; on a joint return, the credit is unavailable if either spouse meets any of the three tests.
The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2001; (b) is claimed as a dependent on someone else’s 2018 tax return; or (c) was a student (see instructions).
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
The credit rate falls in steps as income rises
The Saver's Credit rate is not fixed; it falls in steps as your adjusted gross income rises. The credit equals your qualifying contributions multiplied by a decimal rate that depends on your income and filing status. At the lowest income levels, the rate is 0.5, meaning you receive a credit equal to half your contributions. As income increases, the rate drops to 0.2, then to 0.1, and finally to 0.0 when income exceeds the maximum limit. The specific income ranges where the rate changes vary by filing status: married couples filing jointly have wider ranges than single filers or heads of household. For example, a single filer gets the 0.5 rate when income is up to $19,000, but the rate drops to 0.2 for income over $19,000 but not over $20,500, then to 0.1 for income over $20,500 but not over $31,500. Once income exceeds $31,500 for single filers, the credit rate becomes 0.0 and no credit is available. The same tiered structure applies to other filing statuses with different threshold amounts.
9 Enter the applicable decimal amount shown below. If line 8 is— Over— But not over— And your filing status is— Married filing jointly Head of household Enter on line 9— Single, Married filing separately, or Qualifying widow(er) --- $19,000 0.5 0.5 0.5 $19,000 $20,500 0.5 0.5 0.2 $20,500 $28,500 0.5 0.5 0.1 $28,500 $30,750 0.5 0.2 0.1 $30,750 $31,500 0.5 0.1 0.1 $31,500 $38,000 0.5 0.1 0.0 $38,000 $41,000 0.2 0.1 0.0 $41,000 $47,250 0.1 0.1 0.0 $47,250 $63,000 0.1 0.0 0.0 $63,000 --- 0.0 0.0 0.0 Note: If line 9 is zero, stop; you can’t take this credit.
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
Only the first $2,000 of contributions counts
The Saver's Credit is based on your retirement contributions, but the amount that counts is capped. Line 6 of Form 8880 instructs you to enter the smaller of your net contributions (line 5) or $2,000 in each column. This means that regardless of how much you actually contributed, only $2,000 per person can be used to figure the credit. If your net contributions exceed $2,000, the excess is simply ignored. If your net contributions are less than $2,000, you use the actual smaller amount. On a joint return, the form has separate columns for you and your spouse, so each spouse has their own $2,000 limit applied independently. The $2,000 cap applies to the combined total of IRA contributions, elective deferrals to employer plans, and other eligible contributions, after subtracting any recent distributions required on line 4.
6 In each column, enter the smaller of line 5 or $2,000 . . . . . . 6
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
Recent withdrawals cut the contributions you can count
If you received distributions from a retirement plan or IRA after 2015 and before the due date of your 2018 tax return, those withdrawals reduce the contributions eligible for the Saver's Credit. The form requires you to enter the total of such distributions on line 4, which is then subtracted from your 2018 contributions on line 5. If the result is zero or less, you enter zero, meaning no contributions count toward the credit. This rule prevents taxpayers from claiming a credit for new contributions while simultaneously withdrawing funds from retirement accounts. For married couples filing jointly, both spouses' distributions must be included in the calculation, and the reduction applies to the combined contributions.
4 Certain distributions received after 2015 and before the due date (including extensions) of your 2018 tax return (see instructions). If married filing jointly, include both spouses’ amounts in both columns. See instructions for an exception . . . . . . . . . . . . . 4
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
The credit cannot exceed the tax you owe
The Saver's Credit is nonrefundable, which means it cannot exceed the total tax you owe for the year. After calculating the preliminary credit amount by multiplying your qualifying contributions by the applicable decimal rate, you must compare that figure to your tax liability. The form instructs you to enter the amount from the Credit Limit Worksheet in the instructions on line 11, which represents the maximum credit allowed based on your tax. The final credit you claim on line 12 is the smaller of the preliminary calculation or this tax-based limitation. If your tax liability is zero or very low, you may receive little or no benefit from the credit even if your income and contributions would otherwise qualify you for a substantial amount.
11 Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
Being a student for even part of five months can disqualify you
For the 2018 tax year, you cannot claim the Saver's Credit if you were a student during any part of 5 calendar months of 2018. Being a student means you were enrolled as a full-time student at a school, or you took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes technical, trade, and mechanical schools, but it does not include on-the-job training courses, correspondence schools, or schools offering courses only through the Internet. Even if you were a student for just part of five months - say, you graduated in mid-December but had been enrolled since August - you would be disqualified from taking the credit for that year. This rule applies to the person who made the qualified contribution or elective deferral. If you are filing a joint return, the credit is disallowed if either spouse meets the student test. The verified maximum adjusted gross income limits for 2018 are $63,000 for married taxpayers filing a joint return, $47,250 for taxpayers filing as head of household, and $31,500 for all other taxpayers, but the student test can disqualify you regardless of your income level.
You were a student if during any part of 5 calendar months of 2018 you: • Were enrolled as a full-time student at a school; or • Took a full-time, on-farm training course given by a school or a state, county, or local government agency.
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
The form used, and where the credit lands on your return
The Saver's Credit for the 2018 tax year is computed on Form 8880, which is attached to your Form 1040 or Form 1040NR. After completing the form, the credit amount - whichever is smaller between the calculated credit based on your contributions and the credit limit based on your tax liability - is entered on Schedule 3 (Form 1040), line 51 for most filers, or on Form 1040NR, line 48 for nonresident aliens. Schedule 3 is the form where various nonrefundable credits are listed and totaled before flowing to the main tax return. The credit can reduce the tax you owe, but it cannot exceed your total tax liability for the year. The verified maximum adjusted gross income limits for 2018 are $63,000 for married taxpayers filing a joint return, $47,250 for taxpayers filing as head of household, and $31,500 for all other taxpayers. If your adjusted gross income exceeds the applicable limit, you are not eligible for the credit at all, regardless of how much you contributed to retirement accounts.
12 Credit for qualified retirement savings contributions. Enter the smaller of line 10 or line 11 here and on Schedule 3 (Form 1040), line 51; or Form 1040NR, line 48 . . . . . . . . . . . 12
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
This credit stacks on top of the separate IRA deduction
The Saver's Credit (retirement savings contributions credit) is separate from the IRA deduction and can be claimed alongside it. The IRA deduction reduces your taxable income by the amount you contributed to a traditional IRA, while the Saver's Credit directly reduces the tax you owe dollar for dollar. Both benefits can apply in the same year if you meet the eligibility requirements for each. The IRA deduction has its own income phase-out rules that are independent of the Saver's Credit income limits. The verified maximum adjusted gross income limits for the Saver's Credit in 2018 are $63,000 for married taxpayers filing a joint return, $47,250 for taxpayers filing as head of household, and $31,500 for all other taxpayers. Even if your income falls within these limits and you qualify for the credit, you may also still deduct traditional IRA contributions on your return if you meet the requirements for that separate deduction.
This credit can be claimed in addition to any IRA deduction claimed on Schedule 1 (Form 1040), line 32 or Form 1040NR, line 32.
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2017-64 (IRS)
- Maximum AGI for the 50% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $37,000 to $38,000; the limitation under § 25B(b)(1)(B) is increased from $40,000 to $41,000; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $62,000 to $63,000.
- Maximum AGI for the 20% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $37,000 to $38,000; the limitation under § 25B(b)(1)(B) is increased from $40,000 to $41,000; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $62,000 to $63,000.
- Maximum AGI for the 10% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $37,000 to $38,000; the limitation under § 25B(b)(1)(B) is increased from $40,000 to $41,000; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $62,000 to $63,000.
- Maximum AGI for the 50% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $27,750 to $28,500; the limitation under § 25B(b)(1)(B) is increased from $30,000 to $30,750; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $46,500 to $47,250.
- Maximum AGI for the 20% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $27,750 to $28,500; the limitation under § 25B(b)(1)(B) is increased from $30,000 to $30,750; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $46,500 to $47,250.
- Maximum AGI for the 10% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $27,750 to $28,500; the limitation under § 25B(b)(1)(B) is increased from $30,000 to $30,750; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $46,500 to $47,250.
- Maximum AGI for the 50% credit rate, all other taxpayers
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $18,500 to $19,000; the limitation under § 25B(b)(1)(B) is increased from $20,000 to $20,500; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $31,000 to $31,500.
- Maximum AGI for the 20% credit rate, all other taxpayers
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $18,500 to $19,000; the limitation under § 25B(b)(1)(B) is increased from $20,000 to $20,500; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $31,000 to $31,500.
- Maximum AGI for the 10% credit rate, all other taxpayers
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $18,500 to $19,000; the limitation under § 25B(b)(1)(B) is increased from $20,000 to $20,500; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $31,000 to $31,500.
United States Code (2018 edition), Title 26 Section 25B (Office of the Law Revision Counsel)
- Highest-tier applicable percentage
if the adjusted gross income of the tax- payer is not over $30,000, 50 percent,
- Middle-tier applicable percentage
if the adjusted gross income of the tax- payer is over $30,000 but not over $32,500, 20 percent,
- Lowest non-zero-tier applicable percentage
if the adjusted gross income of the tax- payer is over $32,500 but not over $50,000, 10 percent,
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
- Maximum eligible contribution per person
In each column, enter the smaller of line 5 or $2,000