Page 20 THE MALDEN ADVOCATE–Friday, December 22, 2023 avy n v y y avvyavvy S oravvy S ioreniioor io iori by Jim Miller What Is the Retirement Saver’s Credit and How Does It Work? Dear Savvy Senior, Can you explain to me how the retirement saver’s tax credit works? My wife and I are in our fi fties and are looking for creative ways to boost our retirement savings beyond our 401(k). Is this something we may be eligible for? Struggling to Save Dear Struggling, If your income is low to moderate and you participate in your employer-sponsored retirement plan or an IRA, the Retirement Savings Contribution Credit (aka “Saver’s Credit”) is a frequently overlooked tool that can help boost your retirement savings even more. Here’s how it works. If you contribute to a retirement-savings account like a traditional or Roth IRA, 401(k), 403(b), 457, Thrift Savings Plan, Simplifi ed Employee Pension or SIMPLE plan, the Saver’s Credit will allow you to claim 10, 20 or 50 percent of your contribution of up to $4,000 per year for couples or $2,000 for singles. Keep in mind that a credit is not the same as a tax deduction – it’s better: While a tax deduction just reduces the amount of your income that is subject to taxes, a tax credit reduces your actual tax bill dollar-for-dollar. To qualify, you must also be at least 18 years old and not a full-time student and were not claimed as a dependent on someone else’s tax return. And your adjusted gross income (AGI) in 2023 must be below $73,000 or less as a married couple fi ling jointly, $54,750 or less if fi ling as head of household, or $36,500 or less if you’re a single fi ler. These income limits are adjusted annually to keep pace with infl ation. To get the 50 percent credit, you’ll need to have an income below $43,500 for married couples fi ling jointly; $32,625 if you’re fi ling as head of household; and $21,750 if you’re a single fi ler in 2023. The 20 percent credit rate applies to couples earning between $43,501 to $47,500; for head of household fi lers it’s $32,626 to $35,625; and for individuals it’s $21,751 to $23,750. And the 10 percent rate is for couples with an adjusted gross income between $47,501 and $73,000; for head of household fi lers $35,626 to $54,750; and individuals it’s between $23,751 and $36,500. Here’s an example of how this works. Let’s say that you and your wife earned $75,000 in 2023. Over the course of the year, you contributed $4,000 to your employer’s 401(k) plan. After deducting your 401(k) contribution, your adjusted gross income (AGI) on your joint return is now $71,000. Since your AGI puts you in the 10 percent credit bracket, and you’ve contributed the $4,000 maximum that can be considered for the credit, you are entitled to a $400 Saver’s Credit on your tax return. It’s also worth mentioning that the Saver’s Credit is in addition to any other tax benefi ts you get for your retirement contributions. So, in the previous example, not only would you be entitled to a $400 credit, but you would also be able to exclude the $4,000 401(k) contribution from your taxable income. So, if you’re in the 12 percent tax bracket, this translates to an additional $480 in savings, for a total of $880. How to Claim To claim the Saver’s Credit, you will need to fi ll out Form 8880 (see IRS.gov/pub/irs-pdf/f8880.pdf) and attach it to your Form 1040 or 1040NR when you fi le your tax return. For more information on the Saver’s Credit, see IRS Publication 590-A “Contributions to Individual Retirement Arrangements” (IRS.gov/pub/irs-pdf/p590a.pdf). The IRS also off ers an online quiz you can take to help you determine if you qualify for the Saver’s Credit. To access it go to IRS.gov/Help/ITA – click on “Do I Qualify for the Retirement Savings Contributions Credit?” under the “Credits” tab. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “Th e Savvy Senior” book. Christopher Rosa City of Malden Tree Warden December 15, 22, 2023 CITY OF MALDEN Forest Dale Cemetery 150 Forest Street Malden, MA 02148 Telephone: 781-397-7191 / Fax: 781-388-0849 Christopher Rosa., Superintendent of Cemeteries / Tree Warden LEGAL NOTICE CITY OF MALDEN PUBLIC TREE HEARING In accordance with the provisions of Massachusetts General Law, Chapter 87, Section 3, notice is herewith given that a public hearing will be held at 6:00 P.M. on Wednesday, the 3rd day of January 2024 at Malden City Hall Conference Room 105, 215 Pleasant Street, Malden, Massachusetts for the purpose of determining if the twenty-four (24) public shade trees shall be removed or remain per the Tree Warden of the City of Malden. The trees are located at or around the address identified below: Address Street ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK ROOSEVELT PARK FITZGERALD PARK FITZGERALD PARK FITZGERALD PARK DBH (IN) 17 17 17 17 19 22 14 8 8 6 6 16 11 15 14 17 11 7 7 12 7 6 6 22 Common Name LITTLELEAF LINDEN LITTLELEAF LINDEN LITTLELEAF LINDEN WILLOW WILLOW WILLOW WILLOW WILLOW WILLOW WILLOW WILLOW COTTONWOOD(POPLAR) COTTONWOOD(POPLAR) COTTONWOOD(POPLAR) COTTONWOOD(POPLAR) LITTLELEAF LINDEN HONEY LOCUST HONEY LOCUST HONEY LOCUST HONEY LOCUST HONEY LOCUST BRADFORD PEAR BRADFORD PEAR SUGAR MAPLE OBJECTIONS TO THE REMOVAL OF ANY TREE(S) MUST BE RECEIVED IN WRITING BY THE TREE WARDEN AT THE ABOVE LISTED ADDRESS PRIOR TO OR AT THE TREE HEARING. T BBB shares your guide to giving end-of-year tips to service professionals he end of the year is a time to show appreciation for those who provide necessary services and little luxuries in your daily life. But this year, the increased cost of goods and services means you may need to pay extra attention to your tipping budget. Even if you are limited in what you can give, there’s no need to feel uncomfortable. A little extra thoughtfulness can go a long way. Determining who to tip and how much to give can be confusing. To avoid extra holiday stress, BBB recommends the following tips to help you tip confi - dently while staying within your budget. Tips for holiday tipping • Consider your budget. Begin planning your tips by looking over your holiday budget, or creating one, if you haven’t already. Tips aren’t obligatory, so if you don’t have the extra cash, consider other ways to show BBB | SEE PAGE 21
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