TAX TIP: The SAVERS CREDIT

The Savers Credit is designed to reward middle and lower income taxpayers that put away money for retirement.

It provides a credit between 10% to as much as 50% for each dollar that you put into an IRA or 401(k). It is available for taxpayers with an Adjusted Gross Income (AGI) as high as $50,000. And you may loose part or all of it if you take money out of your retirement account or are a full time student.

Young adults just starting in the work force are excellent candidates for this credit. The power of compound interest makes it a great way to sock away even small amounts of cash into a 401(k) plan or IRA before you are 30. If the government wants to give you back 50% of it as a refund, you'd be crazy to turn them down, especially if you can put the money into a 401(k) with an employer match!