From FoxBusiness.com…
A 401(k) is a great retirement account because investing in it is easy. You should be able to set up automatic contributions from your paycheck with your employer so putting money away for retirement requires virtually no effort at all.
But if you want to make the most of your 401(k), there are a few simple things you can do to maximize its value. Here are four of them.
1. Claim the Saver’s Credit if you can
The Saver’s Credit provides a tax credit of up to 50% of 401(k) contributions up to a maximum of $2,000 in contributions for single tax filers and $4,000 for married joint filers. Your income determines if you are eligible and how much your credit is worth.
If you qualify, this credit could be worth up to $1,000 for a single person and up to $2,000 for married couples. A tax credit reduces your tax bill on a dollar-for-dollar basis so is far more valuable than a deduction. If you would have owed $2,000 in taxes and you qualify for the full $2,000 credit, you bring your IRS bill to $0.
