Retirement Savings Contribution Credit

You may be able to take this credit if you, or your spouse if filing jointly, made

(a) contributions (other than rollover contributions) to a traditional or Roth IRA;

(b) elective deferrals to a 401(k), 403(b), governmental 457(b), SEP, SIMPLE, or to the federal Thrift Savings Plan (TSP);

(c) voluntary employee contributions to a qualified retirement plan, as defined in section 4974(c) (including the federal TSP);

(d) contributions to a 501(c)(18)(D) plan; or

(e) contributions, as a designated beneficiary of an ABLE account, to the ABLE account, as defined in section 529A.

However, you can’t take the credit if either of the following applies.

• The amount on Form 1040, 1040-SR, or 1040-NR, line 11, is more than $33,000 ($49,500 if head of household; $66,000 if married filing jointly).

• The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2004; (b) is claimed as a dependent on someone else’s 2021 tax return; or (c) was a student.

You were a student if during any part of 5 calendar months of 2021 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.

A school includes technical, trade, and mechanical schools. It doesn’t include on-the-job training courses, correspondence schools, or schools offering courses only through the Internet.