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ptheland: "And I think JAFO forgot about the Saver's Credit (formerly the Retirement Savings Contribution Credit). For someone with AGI under about $28k single or $55k joint, there is a credit for making contributions to most any kind of retirement plan. That credit can be up to 50% of the amount contributed, with a maximum of $1000. So the $650 in tax savings is a 50% credit on the $1000 contribution plus saving tax at the 15% bracket - another $150."

Peter, you are being kind. In order to "forget," I would have once have to known something.

I more of an interested kibitzer and have never claimed to be a tax pro. Never having had the opportunity to take advantage of the Saver's Credit (f/k/a the Retirement Savings Contribution Credit), it is outside my knowledge base.

My apologies to the OP.

Regards, JAFO
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