Required information [The following information applies to the questions displayed below.] Desmond is 25 years old and he participates in his employer's 401 (k) plan. During the year, he contributed $3,000 to his 401 (k) account. What is Desmond's saver's credit in each of the following alternative scenarios? (Use Exhibit 13-8) (Leave no answer blank. Enter zero if applicable.). a. Desmond is not married and has no dependents. His AGI after deducting his 401 (k) contribution is $34,000. Saver's credit

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3 June, 18:22

Required information [The following information applies to the questions displayed below.] Desmond is 25 years old and he participates in his employer's 401 (k) plan. During the year, he contributed $3,000 to his 401 (k) account. What is Desmond's saver's credit in each of the following alternative scenarios? (Use Exhibit 13-8) (Leave no answer blank. Enter zero if applicable.). a. Desmond is not married and has no dependents. His AGI after deducting his 401 (k) contribution is $34,000. Saver's credit

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Ramiro Baxter · Answer 1

Saver's credit = $0

Explanation:

He is not entitled to any saver's credit, as he is not married and his AGI is greater than $32,000. Therefore the Saver's credit is equal to zero. Is also important to consider that Desmond is a head of a household and his AIG is between 31,126 and 48,000.

Austin Rice · Answer 2

Saver Credit of Desmond is $0.

Explanation:

It is to encourage the taxpayers to contribute in the retirement plans. It is applicable for all qualified retirement plans. An additional credit up to $ 2000 is available from any other deduction from the retirement account. Saver credit percentage is determined by taxpayers filling status and AGI.

In the present case Desmond 25 years old, contributed $3000 in employer's 401 (k) plan. He wants to know his saver's credit limit in various situations.

A) Desmond is single without dependents and his AGI after contributing to 401 (k) plan is $34000. Saver's credit of D is calculated as:

Desmond will come under "all other filers AGI" because he is single without dependents. As his AGI is above $ 30750 there is no credit available for him.

Hence, maximum saver credit of Desmond is $0.