Tax Credit for Savers
Participation in the State of Iowa Retirement Investors’ Club (RIC) gives some State employees a chance to reduce their individual income tax by up to $1,000 (or $2,000 if married filing jointly) with the Internal Revenue Service’s (IRS) Saver’s Tax Credit.
The Saver’s Tax Credit is available to RIC participants who:
Example: Kim contributed the maximum of $2,000 to her RIC account during 2017. Her adjusted gross income for the year is $28,000 and she files as Head of Household. According the chart above, she will then qualify for a tax credit (a credit against taxes owed) of 50 percent of the amount she contributed. In Kim’s case, the tax credit is worth $1,000.
This saver’s credit is on your tax forms and tax advisors can answer your questions about whether or not you qualify. See additional information at https://das.iowa.gov/saver_credit or https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit.
The Retirement Investors’ Club (RIC) is the State of Iowa’s supplemental retirement savings benefit designed to supplement Social Security and pension (IPERS, POR, Judicial) income. Participating employees contribute through automatic payroll deduction and the State makes matching contributions up to $75 monthly. You are fully vested from day one. To enroll, go to https://das.iowa.gov/RIC/SOI/enrollment.