Baucus, Grassley Ask IRS To Better Publicize Saver’s Credit

Washington, DC – Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Republican Member Chuck Grassley (R-Iowa) today called on the Internal Revenue Service (IRS) to better publicize the Saver’s Credit, a non-refundable tax credit that encourages low- to middle-income Americans to save money for retirement. Created in 2001 and made permanent by the Pension Protection Act of 2006, the Saver’s Credit provides a tax credit of up to 50 percent of the first $2,000 of retirement contributions for families earning up to $50,000 a year. In a letter to Acting IRS Commissioner Kevin Brown, the Senators requested that the IRS improve targeted advertising to ensure that eligible taxpayers are aware that they can use the credit, permit taxpayers to claim the credit on the 1040EZ, and refer to the Saver’s Credit consistently in all IRS forms and publications.

“The Saver’s Credit has helped millions of Americans save for their retirement, but it could be helping even more,” said Baucus. “Many eligible taxpayers are not claiming the Saver’s Credit simply because they don’t know about it. It’s hard for families to put away dollars for retirement, and the IRS should do all it can to help Americans maximize their savings with the Saver’s Credit. Making it possible to claim this credit on the 1040EZ form used by many Americans eligible for the Saver’s Credit would be a vital step.”

Grassley said, “Every bit helps when you’re saving for retirement. But this tax break can help only if people know about it. I hope the IRS will work with us to publicize the saver’s credit as much as possible so every eligible taxpayer is aware of the benefit. Congress made this a priority, and we want to see people use it and watch their savings grow.”

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