Senate Finance Committee Chairman Max Baucus, (D-Mont.), and fellow committee member Chuck Grassley, (R-Iowa), are calling on the Internal Revenue Service to do a better job of publicizing the Saver's Credit to encourage more low-to-middle-income workers to save money for retirement.The credit applies to up to 50 percent of the first $2,000 of retirement contributions for families earning up to $50,000 a year. First created in 2001, the credit became permanent in the Pension Protection Act of 2006.
The senators have written a letter to Acting IRS Commissioner Kevin Brown urging him to advertise the credit more extensively. They want taxpayers to be able to claim the credit on Form 1040EZ and to see it mentioned on the instructions for Form W-2 and on the IRA deduction worksheet.
They have also asked Brown to have the IRS consistently use the term "Saver's Credit" in its forms and instructions to encourage maximum exposure of the credit.
