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Form 8880
Form 8880

Form 8880Credit for Qualified Retirement Savings Contributions

1 — Traditional and Roth IRA Contributions Updated for tax year 2025

Does this apply to you?

  • You contributed to a traditional IRA or Roth IRA during the tax year
  • You are filing Form 8880 to claim the Saver’s Credit for retirement savings

Easy to overlook

Roth IRA contributions count even though they are not deductible You do not get a tax deduction for Roth IRA contributions, but they still count toward the Saver’s Credit. A filer who puts $2,000 into a Roth IRA and assumes it does not qualify for any tax benefit leaves money on the table. The Saver’s Credit is separate from the deduction — it rewards the act of contributing regardless of the account type. 2 IRS Form 8880 instructions — line 1 IRA contributions

Rollover contributions do not count Only new contributions qualify. If you rolled over money from a 401(k) into an IRA, that rollover does not go on line 1. The IRS is looking for fresh savings, not transfers of existing retirement money. Including a rollover inflates your contributions and overstates the credit. 3 IRS Publication 590-A — Contributions to Individual Retirement Arrangements

Watch out for this

Entering contributions that exceed the annual IRA limit. For 2025, the contribution limit is $7,000 ($8,000 if you are age 50 or older). 4 If you enter more than the limit on line 1, the IRS will flag the discrepancy. Only enter contributions you were actually eligible to make, up to the annual cap.

Footnotes

  1. IRS Form 8880 Instructions, Line 1. https://www.irs.gov/instructions/i8880

  2. IRS Form 8880 Instructions, Line 1 — IRA Contributions. https://www.irs.gov/instructions/i8880

  3. IRS Publication 590-A, Contributions to Individual Retirement Arrangements. https://www.irs.gov/publications/p590a

  4. IRS Publication 590-A, IRA Contribution Limits. https://www.irs.gov/publications/p590a

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