A 2006 survey by the Employee Benefit Research Institute reported that about 52% of workers ages 55 and older have less that $50,000 saved for retirement. Saving for retirement is also an increasingly important cash flow consideration for farm families. For some Adjusted Gross Income (AGI) levels, a Federal Income Tax Credit is available for saving in such retirement programs as: An IRA, SEP-IRA, SIMPLE, 401K, 403B or 457 retirement plans. The Savers Credit is for up to $2,000 of qualified contributions. People should strongly consider putting money into retirement accounts and to take advantage of this Savers Credit.
% of Contribution Single AGI Joint AGI
50 0-$15,000 0-$30,000
20 $15-16,250 $30-32,500
10 $16,250-25,000 $32,500-50,000
0 +$25,000 +$50,000