kevin wrote:
- quote -


Kevin, you don't hear much about it because it phases out at AGI of $25k
for individuals, $50k for married/joint returns. That's AGI, not taxable
income. So many people contributing to retirement accounts don't qualify
for it.

Of course a lot DO qualify and it should be publicized more - that was
the point of the credit, to give a benefit that strongly incentivized
retirement savings. And a Roth is ideal for the reasons you mention. We
financial advisor types deal so much with the > 50k people that we forget
about these very useful benefits.

-Tad

I hear lots about the tax benefits of IRAs, e.g., no tax on
contributions, or no tax on growth. But one thing I have never heard
mentioned is the federal retirement contribution credit for people
making less than ~$58k/year.

I have a Roth IRA, and since I make less than that limit, it seems to
me that I get both tax benefits -- no taxes on the growth in the
account or when I retire, and the gov't essentially reimburses me just
as much as I would save if I had a traditional IRA.

Am I doing this wrong, or thinking about this wrong? If not, why don't
I hear more about it -- especially if you are in the very low range,
~$30k/year, the credit is something like 50% of your contributions!

Thanks,
-Kev