401k Saver's Credit (401k Contributions Tax Credit ) Quiz

1) The highest tax credit that you can get on 401k contributions is:

a) $1000
b) $1500
c) $2000
d) $2500

2) The "Saver's Tax Credit" Legislation for Low Income Savers went into effect thanks to the Economic Growth and Tax Relief Reconciliation Act of 2001

a) True
b) False

3) Which of these is NOT a requirement to be eligible for Saver's Tax Credit:

a) Applicant must be 18 years of age or older
b) Not be a full time student at a college or university
c) Cannot be claimed as a dependent on someone else's tax return
d) Applicant must be single, or have a spouse that doesn't work

4) In order to be eligible for Saver's Tax Credit, the saver's adjusted Gross Income must NOT exceed:

a) $15,000 if filing as a single
b) $20,000 if filing as a single
c) $25,000 if filing as a single
d) $30,000 if filing as a single

5) In order to be eligible for Saver's Tax Credit, the saver's adjusted Gross Income must NOT exceed:

a) $32,500 if head of household with qualifying dependents
b) $37,500 if head of household with qualifying dependents
c) $40,500 if head of household with qualifying dependents
d) $42,500 if head of household with qualifying dependents

6) In order to be eligible for Saver's Tax Credit, the saver's adjusted Gross Income must NOT exceed:

a) $40,000 joint with spouse
b) $45,000 joint with spouse
c) $50,000 joint with spouse
d) $45,000 joint with spouse

7) A single taxpayer with $15000 of adjusted Gross Income for the year 2006 would fall under the "All Other Filers $0 - $15000" category" and would therefore be eligible for __% tax credit.

a) 35%
b) 40%
c) 45%
d) 50%

8) If a married couple earn a combined adjusted gross wage of $45000 and contribute $5000 to a 401k retirement plan (pre-tax contribution), their Saver's Tax Credit would be:

a) 5% x $5000 = $250
b) 10% x $5000 = $500
c) 15% x $5000 = $750
d) 20% x $5000 = $1000

9) If a single taxpayer earns more than $25000 gross income per year, his saver's tax credit would be:

a) 10% of contribution
b) 15% of contribution
c ) 0$
d ) 20% of contribution

10) If a joint married couple earn a gross income in the range $32,501-$50,000, then their Saver's Tax Credit would be:

a) 5% of contribution
b) 10% of contribution
c ) 15% of contribution
d ) 20% of contribution