Next year’s new Congress should consider these ideas as part of a broader set of retirement policy reforms. For example, access to workplace retirement accounts could be achieved by creating Multiple Employer Plans (MEPs) - an idea that has been proposed by Republicans and is included in President Barack Obama’s 2017 budget. At the same time, expansion of Social Security benefits should be on the table, especially for lower-income retirees.
“We strongly support expanding the saver’s credit by increasing the income thresholds and making it refundable,” said David Certner, legislative policy director at AARP. “It’s an important part of the mix along with some of the other retirement incentives pending in Congress - whether they are enacted this year or next in the larger context of tax reform.”
Using The Credit
If you have not made a contribution to an IRA or myRA for 2015, you have until April 18 to do so (the usual April 15 deadline for tax returns has been pushed back by three days this year due to various state holidays on the 15th).
Most workers eligible for the Saver’s Credit also can take advantage of the IRS Free File program, which makes tax preparation programs from 13 software companies available free of charge. This is available to taxpayers with adjusted gross income of $62,000 or less