Question

Andrew and Marina are married filing joint and have modified AGI of $77,500. Andrew made a contribution to a qualified retirement plan of $2,000 during the year. How much is their retirement savings contributions credit?

Answer 1

Answer:

$0

Explanation:

The credit rate for retirement savings depend upon several factors. General credit rates are 10%, 20% and 50%.

In case of a couple married and filing jointly the credit rate in case of modified AGI being more than $63,000 = $0.

The limit of $63,000 is revised to $64,000 in year 2019, and further revised to $65,000 in year 2020.

Here, in the given case the contribution credit rate = 0% as the AGI in case of joint filing is more than $65,000 as for year 2020.

Thus, retirement savings contribution credit = $2000 $\times$ 0% = $0.