An IRS Saver Loan Is Like an Employer for Your Retirement Contributions
Nobody would pass up free money, right? But that’s what a lot of people do when they give up their employer’s 401 (k) match . Likewise, if you are within the statutory income limit, you can get a $ 2,000 loan from the IRS for your pension contributions.
We have already mentioned the Savings Tax Credit as a tax credit that is often overlooked, but we thought it worthwhile to emphasize that this credit is a lot like an employer match – guaranteed return of 10% to 50% of your investment. The amount of loan you can apply for depends on your adjusted gross income.
The Huffington Post explains :
“Saver’s Credit is essentially government reimbursement for your IRA or 401 (k) savings,” says Kalamarides. “If you contribute to 401 (k) through work, you may also be eligible for an employer program. A match is like a guaranteed income – when was the last time you heard of someone making a 50% return on their investment? “
You must meet an income limit ($ 30,500 to $ 61,000 depending on your registration status) and other criteria, but if you are eligible, even depositing a small amount into your 401 (k) or Roth IRA will give you this “match . “If you can make some retirement money, it would be foolish to give it up.