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Saver's credit 8880

Level 1

MFJ, husband received IRA distribution from inherited IRA (from mother) and wife made 401K contribution, will they qualify for saver's credit? If Yes, how it's accomplished using Pro connect? Than you

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3 Replies 3
Level 15
Level 15

Savers credit should calculate automatically if they qualify.

Level 14

Maybe, but probably not.

The distribution will restrict the Saver's Credit.  So unless the contribution is higher than the distributions in the last 3 years, there won't be a credit.  It does not matter if one spouse did the distribution and the other spouse did the contribution, it will still be restricted.


EDIT:  See comment below.

Level 14

WAIT, I'm wrong!

Inherited non-spousal IRA distributions do NOT affect it.