Skip to content
ChatProjectCodes

Part III. Maximum Amount Contributable

0126 Publ 571 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States

18. - If you had only nonelective contributions, enter the amount from line 3. This is your MAC.

  • If you had only elective deferrals, enter the lesser of line 3 or line 17. This is your MAC.

  • If you had both elective deferrals and nonelective contributions, enter the amount from

line 3. This is your MAC. (Use the amount on line 17 to determine if you have excess elective deferrals as explained in chapter 7.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.

1 If you participate in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pension plans of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. You must also combine the contributions made to all 403(b) accounts on your behalf by your employer.

Publication 571 (1-2026) Chapter 9 Worksheets 25

10. Retirement Savings Contributions Credit (Saver's Credit)

If you or your employer makes eligible contributions (defined later) to a retirement plan, you may be able to take a credit of up to $2,000 (up to $4,000 if filing jointly). This credit could reduce the federal income tax you pay dollar for dollar.

Can you claim the credit? If you or your employer makes eligible contributions to a retirement plan, you can claim the credit if all of the following apply.

  1. You aren’t under age 18.

  2. You aren’t a full-time student (explained next).

  3. No one else, such as your parent(s), claims an exemption for you on their tax return.

  4. Your adjusted gross income (defined later) isn’t more than:

a. $79,000 for 2025 ($80,500 for 2026) if your filing

status is married filing jointly;

b. $59,250 for 2025 ($60,375 for 2026) if your filing

status is head of household (with qualifying person); or

c. $39,500 for 2025 ($40,250 for 2026) if your filing

status is single, married filing separately, or qualifying surviving spouse with dependent child.

Full-time student. You are a full-time student if, during some part of each of 5 calendar months (not necessarily consecutive) during the calendar year, you are either:

  • A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance; or

  • A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance; or a state, county, or local government.

You are a full-time student if you are enrolled for the number of hours or courses the school considers to be full-time.

Adjusted gross income. This is generally the amount on line 11a of your 2025 Form 1040 or 1040-SR. For purposes of this section, adjusted gross income shall be determined without regard to sections 911, 931, and 933. You must add to that amount any exclusion or deduction from gross income claimed for the year for:

  • Foreign earned income;

  • Foreign housing costs;

  • Income for bona fide residents of American Samoa, Guam, or the Northern Mariana Islands; and

  • Income from Puerto Rico.

Eligible contributions. These include:

  1. Contributions to a traditional or Roth IRA;

  2. Elective deferrals, including amounts designated as after-tax Roth contributions, to:

a. A 401(k) plan (including a SIMPLE 401(k) plan),

b. A section 403(b) annuity,

c. An eligible deferred compensation plan of a state

or local government (a governmental 457 plan),

d. A SIMPLE IRA plan, or

e. A SARSEP plan;

  1. Contributions to a section 501(c)(18) plan; and

  2. ABLE account contributions by the designated beneficiary as defined by section 529A.

They also include voluntary after-tax employee contributions to a tax-qualified retirement plan or a section 403(b) annuity. For purposes of the credit, an employee contribution will be voluntary as long as it isn’t required as a condition of employment.

Reducing eligible contributions. Reduce your eligible contributions (but not below zero) by the total distributions you received during the testing period (defined later) from any IRA, plan, or annuity included earlier under Eligible contributions . Also, reduce your eligible contributions by any distribution from a Roth IRA that isn’t rolled over, even if the distribution isn’t taxable.

Do not reduce your eligible contributions by any of the following.

  1. The portion of any distribution which isn’t includible in income because it is a trustee-to-trustee transfer or a rollover distribution.

  2. Distributions that are taxable as the result of an in-plan rollover to your designated Roth account.

  3. Any distribution that is a return of a contribution to an IRA (including a Roth IRA) made during the year for which you claim the credit if:

a. The distribution is made before the due date (in cluding extensions) of your tax return for that year,

b. You don’t take a deduction for the contribution,

and

c. The distribution includes any income attributable

to the contribution.

  1. Loans from a qualified employer plan treated as a distribution.

  2. Distributions of excess contributions or deferrals (and income attributable to excess contributions and deferrals).

26 Chapter 10 Retirement Savings Contributions Credit

(Saver's Credit)

Publication 571 (1-2026)

  1. Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k).

  2. Distributions from an eligible retirement plan that are converted or rolled over to a Roth IRA.

  3. Distributions from a military retirement plan.

  4. Distributions from an inherited IRA by a nonspousal beneficiary.

Distributions received by spouse. Any distributions your spouse receives are treated as received by you if you file a joint return with your spouse both for the year of the distribution and for the year for which you claim the credit.

Testing period. The testing period consists of:

  • The year in which you claim the credit,

  • The 2 years before the year in which you claim the credit, and

  • The period after the end of the year in which you claim the credit and before the due date of the return (including extensions) for filing your return for the year in which you claimed the credit.

Example. You and your spouse filed joint returns in 2023 and 2024, and plan to do so in 2025 and 2026. You received a taxable distribution from a qualified plan in 2023 and a taxable distribution from an eligible section 457(b) deferred compensation plan in 2024. Your spouse received taxable distributions from a Roth IRA in 2025 and tax-free distributions from a Roth IRA in 2026 before April 15. You made eligible contributions to an IRA in 2025 and you otherwise qualify for this credit. You must reduce the amount of your qualifying contributions in 2025 by the total of the distributions you and your spouse received in 2023, 2024, 2025, and 2026.

Maximum eligible contributions. After your contributions are reduced, the maximum annual contribution on which you can base the credit is $2,000 per person.

Effect on other credits. The amount of this credit won’t change the amount of your refundable tax credits. A refundable tax credit, such as the earned income credit or the additional child tax credit, is an amount that you would receive as a refund even if you didn’t otherwise owe any taxes.

Maximum credit. This is a nonrefundable credit. The amount of the credit in any year can’t be more than the amount of tax that you would otherwise pay (not counting any refundable credits or the adoption credit) in any year. If your tax liability is reduced to zero because of other nonrefundable credits, such as the education credits, then you won’t be entitled to this credit.

How to figure and report the credit. The amount of the credit you can get is based on the contributions you make and your credit rate. The credit rate can be as low as 10% or as high as 50%. Your credit rate depends on your income and your filing status. See Form 8880 to determine your credit rate.

The maximum contribution taken into account is $2,000 per person. On a joint return, up to $2,000 is taken into account for each spouse.

Figure the credit on Form 8880. Report the credit on line 4 of your 2025 Schedule 3 (Form 1040) and attach Form 8880 to your return.

Exceptions & meaning →

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away.

Tax reform. Tax reform legislation impacting federal taxes, credits, and deductions was enacted in P.L. 119-21, commonly known as the One Big Beautiful Bill Act on July 4, 2025. Go to IRS.gov/OBBB for more information and updates on how the legislation affects your taxes.

Preparing and filing your tax return. After receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

  • Free File. This program lets you prepare and file your federal individual income tax return for free using software or Free File Fillable Forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options.

  • VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/ VITA , download the free IRS2Go app, or call

800-906-9887 for information on free tax return prepa- ration.

  • TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE or download the free IRS2Go app for information on free tax return preparation.

  • MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service

Publication 571 (1-2026) 27

offered by the Department of Defense through Military OneSource. For more information, go to MilitaryOneSource ( MilitaryOneSource.mil/MilTax ).

Also, the IRS offers Free Fillable Forms, which can be completed online and then e-filed regardless of income.

Using online tools to help prepare your return. Go to IRS.gov/Tools for the following.

earned income credit (EITC).

itemize deductions on Schedule A (Form 1040).

Getting answers to your tax questions. On IRS.gov, you can get up-to-date information on current events and changes in tax law.

  • IRS.gov/Help : A variety of tools to help you get answers to some of the most common tax questions.

  • IRS.gov/ITA : The Interactive Tax Assistant, a tool that

will ask you questions and, based on your input, pro- vide answers on a number of tax law topics.

tions. You will find details on the most recent tax changes and interactive links to help you find answers to your questions.

  • You may also be able to access tax law information in your e-filing software.

Need someone to prepare your tax return? There are various types of tax return preparers, including enrolled agents, certified public accountants (CPAs), accountants, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:

  • Primarily responsible for the overall substantive accuracy of your return,

  • Required to sign the return, and

  • Required to include their preparer tax identification number (PTIN).

Caution: Although the tax preparer always signs the return, you're ultimately responsible for providing all the information required for the preparer to accurately prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For

more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services On- line. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure online W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement; and Form W-2c, Corrected Wage and Tax Statement.

Business tax account. If you are a sole proprietor, a partnership, an S corporation, a C corporation, or a single-member limited liability company (LLC), you can view your tax information on record with the IRS and do more with a business tax account. Go to IRS.gov/ BusinessAccount for more information.

IRS social media. Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our highest priority. We use these tools to share public information with you. Don’t post your social security number (SSN) or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, Spanish, and ASL.

Online tax information in other languages. You can find information on IRS.gov/MyLanguage if English isn’t your native language.

Over-the-Phone Interpreter (OPI) Service. The IRS serves taxpayers with limited-English proficiency (LEP) by offering OPI services. The OPI Service is available at Taxpayer Assistance Centers (TACs), most IRS offices, and every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Accessibility Helpline available for taxpayers with disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and future accessibility products and services available in alternative media formats (for example, braille-ready, large print, audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or account-related issues, go to IRS.gov/ LetUsHelp .

Alternative media preference. Form 9000, Alternative Media Preference, or Form 9000(SP) allows you to elect to receive certain types of written correspondence in the following formats.

  • Standard Print.

  • Large Print.

28 Publication 571 (1-2026)

  • Braille.

  • Audio (MP3).

  • Plain Text File (TXT).

  • Braille-Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/ Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to IRS.gov/OrderForms to place an order.

Mobile-friendly forms. You’ll need an IRS Online Account (OLA) to complete mobile-friendly forms that require signatures. You’ll have the option to submit your form(s) online or download a copy for mailing. You’ll need scans of your documents to support your submission. Go to IRS.gov/MobileFriendlyForms for more information.

Getting tax publications and instructions in eBook format. Download and view most tax publications and instructions (including the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/eBooks .

IRS eBooks have been tested using Apple's iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and eBook functionality may not operate as intended.

Access your online account (individual taxpayers only). Go to IRS.gov/Account to securely access information about your federal tax account.

  • View the amount you owe and a breakdown by tax year.

  • See payment plan details or apply for a new payment plan.

  • Make a payment or view 5 years of payment history and any pending or scheduled payments.

  • Access your tax records, including key data from your most recent tax return, and transcripts.

  • View digital copies of select notices from the IRS.

  • Approve or reject authorization requests from tax professionals.

Get a transcript of your return. With an online account, you can access a variety of information to help you during the filing season. You can get a transcript, review your most recently filed tax return, and get your adjusted gross income. Create or access your online account at IRS.gov/ Account .

Tax Pro Account. This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS OLA. For more information, go to IRS.gov/ TaxProAccount .

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, which securely and electronically transfers your refund di

rectly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, destroyed, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/ DirectDeposit for more information on where to find a bank or credit union that can open an account online.

Reporting and resolving your tax-related identity theft issues.

  • Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

  • The IRS doesn’t initiate contact with taxpayers by email, text messages (including shortened links), telephone calls, or social media channels to request or verify personal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

  • Go to IRS.gov/IdentityTheft, the IRS Identity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

  • Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN .

Ways to check on the status of your refund.

  • Go to IRS.gov/Refunds .

  • Download the official IRS2Go app to your mobile device to check your refund status.

  • Call the automated refund hotline at 800-829-1954.

Caution: The IRS can’t issue refunds before mid-February for returns that claimed the EITC or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits.

Making a tax payment. The IRS recommends paying electronically whenever possible. Options to pay electronically are included in the list below. Payments of U.S. tax must be remitted to the IRS in U.S. dollars. Digital assets are not accepted. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

free and secure, and no sign-in is required. You can change or cancel within two days of scheduled payment.

Publication 571 (1-2026) 29

approved payment processor to pay online or by phone.

when filing your federal taxes using tax return prepara- tion software or through a tax professional.

is the best option for businesses. Enrollment is re- quired.

  • Check or Money Order : Mail your payments to the address listed on the notice or instructions.

  • Cash : You may be able to pay your taxes with cash at

a participating retail store.

from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note: The IRS uses the latest encryption technology to ensure that the electronic payments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick and easy.

What if I can’t pay now? Go to IRS.gov/Payments for more information about your options.

  • Apply for an online payment agreement ( IRS.gov/ OPA ) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

  • Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compromise program, go to IRS.gov/OIC .

Filing an amended return. Go to IRS.gov/Form1040X for information and updates.

Checking the status of your amended return. Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns.

Caution: It can take up to 3 weeks from the date you filed your amended return for it to show up in our system, and processing it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve re- ceived. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

IRS Document Upload Tool. You may be able to use the Document Upload Tool to respond digitally to eligible IRS notices and letters by securely uploading required documents online through IRS.gov. For more information, go to IRS.gov/DUT .

Schedule LEP. You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You

may not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive communications, including notices and letters in English until they are translated to your preferred language.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

———————————————————————— Below is a message to you from the Taxpayer Advocate Service, an independent organization established by Congress.

Exceptions & meaning →

The Taxpayer Advocate Service (TAS) Is Here To Help You

What Is the Taxpayer Advocate Service?

The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS) that helps taxpayers resolve problems with the IRS, makes administrative and legislative recommendations to prevent or correct the problems, and protects taxpayer rights. We work to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights. We are Your Voice at the IRS.

How Can TAS Help Me?

TAS can help you resolve problems that you haven’t been able to resolve with the IRS on your own. Always try to resolve your problem with the IRS first, but if you can’t, then come to TAS. Our services are free .

  • TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for TAS help if your IRS problem is causing financial difficulty, if you’ve tried and been unable to resolve your issue with the IRS, or if you believe an IRS system, process, or procedure just isn’t working as it should.

  • To get help any time with general tax topics, visit www.TaxpayerAdvocate.IRS.gov . The site can help

you with common tax issues and situations, such as what to do if you make a mistake on your return or if you get a notice from the IRS.

  • TAS works to resolve large-scale (systemic) problems that affect many taxpayers. You can report systemic issues at www.IRS.gov/SAMS . (Be sure not to include any personal identifiable information.)

30 Publication 571 (1-2026)

How Do I Contact TAS?

TAS has offices in every state, the District of Columbia, and Puerto Rico. To find your advocate's number:

What Are My Rights as a Taxpayer?

The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. Go to

www.TaxpayerAdvocate.IRS.gov/Taxpayer-Rights for more information about the rights, what they mean to you, and how they apply to specific situations you may encounter with the IRS. TAS strives to protect taxpayer rights and ensure the IRS is administering the tax law in a fair and equitable way.

Publication 571 (1-2026) 31

To help us develop a more useful index, please let us know if you have ideas for index entries. Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

403(b) account 3 403(b) plans : Basics 3 Benefits 3 Participation 4 Self-employed ministers 4 What is a 403(b) plan? 3 Who can set up a 403(b)

account? 4

A After-tax contributions 4 Assistance ( See Tax help)

B Basics 3 Benefits 3

Q qualified birth or adoption 18 qualified birth or adoption

distribution 20 Qualified domestic relations

order 22

R Reporting contributions :

Chaplains 5 Reporting Contributions :

Self-employed ministers 5 Required distributions 19 retirement income accounts 3, 5 Retirement savings contributions

credit 1, 26 Rollovers 18, 20 Roth contribution program 11

C Catch-up contributions 17 Chaplain 4 Church employees 16

Determining 17 Excess amounts 18 Excess deferrals 18 Excess elective deferral 18 Excise tax 18 Excise tax :

Excess contributions 18 Reporting requirement 18

F Full-time or part-time 11

G Gift tax 22

I Incidental life insurance 7 Includible compensation 7

403(b) plan 16 Figuring 9 Foreign missionaries 16 Incidental life insurance 7 Self-employed ministers 16 Includible compensation for your

Years of service 16 Contributions 4

After-tax 4 Catch-up 17 Elective deferrals 4, 5 Nonelective 4 Reporting 5 Correcting excess contributions 17 Credit, for retirement savings

L Limit on annual additions 6 Limit on elective deferrals 11

15-year rule 11 Figuring 14 General limit 11

most recent year of service : Definition 6

contributions 26

D Distributions 18

10-year tax option 19 90-24 transfer 19 Deceased employees 22 Direct rollover 22 Eligible retirement plans 21 Frozen deposit 22 Gift tax 22 Minimum required 19 Qualified domestic relations

M MAC ( See Maximum amount

Components 5 How to figure MAC 5 When to figure MAC 6 Minimum required distributions 19 Ministers 4, 16 Missing children 2 Most recent year of service 6 Most recent year of service,

contributable) Maximum amount contributable 5

S Salary reduction agreement 11 Self-employed ministers 4, 5, 12, 16

T Tax help 27 Transfers 19

90-24 transfer 19 Conservatorship 19 Direct-trustee-to-trustee 20 Insolvency 19 Permissive service credit 20

V Voluntary deductible

contributions 22

W What is a 403(b) plan? 3

Church employees 12, 16 Definition 12 Employer's annual work period 12 Full year of service 13 Full-time employee for the full

Y Years of service 11

order 22 Rollovers 20 Second rollover 22 Transfers 19

figuring 6

year 12 Full-time for part of the year 13 Other than full-time for the full

year 13 Part-time for the full year 13 Part-time for the part of the year 13 Self-employed minister 16 Total years of service 12

E Elective deferrals 4, 5 Eligible employees 4, 12 Employer's annual work period 12 Excess contributions 17

Correcting 17

N Nonelective contributions 4, 5

P Pre-tax contributions 7, 10, 20, 24 Publications ( See Tax help)

32 Publication 571 (1-2026)

Exceptions & meaning →

Get a plain-English answer with a citation back to this text.

Ask AI about this code
Export this section
▸Contents — 0126 Publ 571 (PDF)
0126 Publ 571 (PDF)

GoCodebook provides public access, search, citation, multilingual explanation, and practical interpretation of legally adopted building regulations. It is not a substitute for the official ICC or California code publications.