Nearly Half of Workers in Survey Unaware of Saver’s Credit

Workers filing their taxes may need a reminder to claim tax credits for their retirement account contributions. The nonprofit Transamerica Center for Retirement Studies spoke with 6,153 U.S. workers from September 16 through October 17, 2025, and found that only 48% of respondents were aware of the Saver’s Credit, otherwise known as the Credit for Qualified Retirement Savings Contributions.

For 2025 taxes due in 2026, the Saver’s Credit is limited to $1,000 for individuals or $2,000 for married couples filing jointly whose income is less than certain thresholds and who have contributed in the previous year to a 401(k), 403(b), governmental 457(b), Thrift Savings Plan, SIMPLE or other qualifying retirement plan. The maximum income levels, reported on Form 1040, to qualify for the credit are $40,250 for individuals and married individuals filing separately, $60,375 for the head of a household, and $80,500 for married couples filing jointly.

“We’re concerned that there’s an awareness gap that could lead to people not benefiting from it who might otherwise,” says Catherine Collinson, the Transamerica Institute’s CEO and president. “For people who are not yet saving for retirement, it might be just the nudge they need to start saving.”

Transamerica’s analysis of the most recent IRS data found the average amount claimed by taxpayers of all filing statuses via the Saver’s Credit in 2022 was $194.

Starting with 2027 taxes due in 2028, the Saver’s Credit will be replaced by the Saver’s Match, which will provide matching contributions to an individual retirement account or retirement plan of a taxpayer with a similar qualifying income.

President Donald Trump referenced a similar proposal during his State of the Union speech Tuesday, which would allow private sector workers without employer-sponsored retirement savings plans to participate in tax-advantaged retirement accounts with potential matching contributions of up to $1,000 from the federal government. As of Wednesday, no further details about the president’s proposal were available.

Tax Season Reminders

Collinson says advisers can encourage plan sponsors and plan providers to alert workers about the Saver’s Credit by such methods as sending emails or posting bulletin board messages.

“You can use words like, ‘Employees who meet these income eligibility requirements may receive a tax credit for saving for retirement,’ and that can make all the difference,” Collinson says. “It raises the point of curiosity: ‘Am I eligible?’”

She says employers can also take the opportunity to remind their entire workforce of all available retirement benefits, such as 401(k) plans, Roth plans or other savings accounts offered, such as health savings accounts. Employees age 50 and older can also be alerted to Roth catch-up rules.