If you had the chance to put $350 into a savings account and have it immediately turn into $1,000, would you do it?
You have this chance if your family is low income and makes a contribution to any Individual Retirement Account (IRA) by April 15, 2016.
This federal rule is called the Saver’s Credit. If you are single, you are eligible for this credit if your adjusted gross income is less than $30,500. If you are married your adjusted gross income must be less than $61,000. These are the limits for 2015.
If you are eligible you can claim this credit by making a 2015 contribution to any IRA: it could be you spouse’s 401(k) or 403(b) plan. Or you can contribute to a Traditional IRA, Roth IRA, SIMPLE IRA or SEP IRA. To contribute to a SIMPLE IRA you must have set one up before October 1, 2015.
The tax credit is worth 10%, 20%, or 50% of your IRA contribution, up to a maximum $2,000 contribution. The amount of credit depends on how low your family income is.
Let’s look at an example of how this works.
Childcareinfo.com is a community for family child care providers and parents that offers a wide variety of resources including recipes, a blog, and a newsletter. It serves as a clearinghouse for many online resources (children’s activities, training opportunities, equipment, and more).
Childcareinfo.com was created by Minute Menu (now KidKare) to offer free assistance that will help the family child care community grow.
Tom Copeland – www.tomcopelandblog.com