Saver's Credit

changelog_entry.yaml

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+- bump: minor
+  changes:
+    added:
+    - Retirement Savings Contributions Credit (Saver’s Credit)

policyengine_us/parameters/gov/irs/credits/retirement_saving/contributions_cap.yaml

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+description: The IRS caps the saver's credit at the following amount.
+values:
+  2019-01-01: 2_000
+metadata:
+  unit: currency-USD
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) contributions cap
+  reference:
+    - title: 26 U.S. Code § 25B(a)
+      href: https://www.law.cornell.edu/uscode/text/26/25B
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: 2022 Publication 590-A
+      href: https://www.irs.gov/pub/irs-pdf/p590a.pdf#page=45
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/joint/rate/higher.yaml

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+description: IRS multiplies the qualified contributions by the following rate for joint filers, based on a higher adjusted gross income threshold under the savor's credit.  
+metadata:
+  unit: currency-USD
+  period: year
+  label: Saver’s Credit rate based on joint higher threshold
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.1

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/joint/rate/lower.yaml

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+description: IRS multiplies the qualified contributions by the following rate for joint filers, based on lower adjusted gross income threshold under the savor's credit.  
+metadata:
+  unit: currency-USD
+  period: year
+  label: Saver’s Credit rate based on joint lower threshold
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.5

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/joint/rate/middle.yaml

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+description: IRS multiplies the qualified contributions by the following rate for joint filers, based on middle adjusted gross income threshold under the savor's credit.  
+metadata:
+  unit: currency-USD
+  period: year
+  label: Saver’s Credit rate based on joint middle threshold
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.2

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/joint/threshold/higher.yaml

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+description: IRS multiplies the qualified contributions different rate for joint filers, based on adjusted gross income under the savor's credit.
+metadata:
+  unit: currency-USD
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) joint higher threshold
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 64_000
+  2020-01-01: 65_000
+  2021-01-01: 66_000
+  2022-01-01: 68_000
+  2023-01-01: 73_000

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/joint/threshold/lower.yaml

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+description: IRS multiplies the qualified contributions different rate for joint filers, based on adjusted gross income under the savor's credit.  
+metadata:
+  unit: currency-USD
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) joint lower threshold
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 38_500
+  2020-01-01: 39_000
+  2021-01-01: 39_500
+  2022-01-01: 41_000
+  2023-01-01: 43_500

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/joint/threshold/middle.yaml

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+description: IRS multiplies the qualified contributions different rate for joint filers, based on adjusted gross income under the savor's credit.
+metadata:
+  unit: currency-USD
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) joint middle threshold
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 41_500
+  2020-01-01: 42_500
+  2021-01-01: 43_000
+  2022-01-01: 44_000
+  2023-01-01: 47_500

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/match/head_of_household.yaml

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+description: IRS matches head of household based on joint savors  
+metadata:
+  unit: /1
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) head of household match rate
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(2)(a)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.75

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/match/separate.yaml

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+description: IRS matches separate based on joint savors  
+metadata:
+  unit: /1
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) separate match rate
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(2)(b)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.5

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/match/single.yaml

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+description: IRS matches single based on joint savors  
+metadata:
+  unit: /1
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) single match rate
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(2)(b)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.5

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/match/widow.yaml

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+description: IRS matches widow based on joint savors  
+metadata:
+  unit: /1
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) widow match rate
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(2)(b)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.5

policyengine_us/parameters/gov/irs/credits/retirement_saving/threshold/age.yaml

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+description: The IRS limits the saver's credit to taxpayers over and equal to following age threshold.  
+values:
+  2019-01-01: 18
+metadata:
+  unit: year
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) age threshold
+  reference:
+    - title: 26 U.S. Code § 25B(c)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B 
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: 2022 Publication 590-A
+      href: https://www.irs.gov/pub/irs-pdf/p590a.pdf#page=45
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1

policyengine_us/parameters/gov/irs/credits/retirement_saving/threshold/agi.yaml

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+description: The IRS limits the saver's credit to taxpayers with adjusted gross income below or equal to this, based on filing status.  
+metadata:
+  unit: currency-USD
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) AGI threshold
+  breakdown:
+    - filing_status
+  reference:
+    - title: 26 U.S. Code § 25B(c)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: 2022 Publication 590-A
+      href: https://www.irs.gov/pub/irs-pdf/p590a.pdf#page=45
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+JOINT:
+  2019-01-01: 64_000
+  2020-01-01: 65_000
+  2021-01-01: 66_000
+  2022-01-01: 68_000
+  2023-01-01: 73_000
+  2024-01-01: 76_500
+SINGLE:
+  2019-01-01: 32_000
+  2020-01-01: 32_500
+  2021-01-01: 33_000
+  2022-01-01: 34_000
+  2023-01-01: 35_500
+  2024-01-01: 38_250
+SEPARATE:
+  2019-01-01: 32_000
+  2020-01-01: 32_500
+  2021-01-01: 33_000
+  2022-01-01: 34_000
+  2023-01-01: 35_500
+  2024-01-01: 38_250
+HEAD_OF_HOUSEHOLD:
+  2019-01-01: 48_000
+  2020-01-01: 48_750
+  2021-01-01: 49_500
+  2022-01-01: 34_000
+  2023-01-01: 54_750
+  2024-01-01: 57_375
+WIDOW:
+  2019-01-01: 32_000
+  2020-01-01: 32_500
+  2021-01-01: 33_000
+  2022-01-01: 34_000
+  2023-01-01: 35_500
+  2024-01-01: 38_250

policyengine_us/tests/policy/baseline/gov/irs/credits/retirement_saving/retirement_saving_agi_eligible.yaml

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+- name: not agi eligible - single
+  period: 2023
+  input:
+    adjusted_gross_income: 40_000
+    filing_status: SINGLE
+  output:
+    savers_credit_agi_eligible: false
+
+- name: agi eligible - head of household
+  period: 2023
+  input:
+    adjusted_gross_income: 50_000
+    filing_status:  HEAD_OF_HOUSEHOLD
+  output:
+    savers_credit_agi_eligible: true

policyengine_us/tests/policy/baseline/gov/irs/credits/retirement_saving/retirement_saving_credit.yaml

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+- name: joint with one eligible person
+  period: 2021
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: true
+        adjusted_gross_income_person: 39_000
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+      person2:
+        savers_credit_eligible_person: false
+        adjusted_gross_income_person: 0
+        traditional_ira_contributions: 0
+        roth_ira_contributions: 0
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        savers_credit_agi_eligible: true
+  output:
+    savers_credit: 1_000
+
+- name: joint with AGI over a threshold 
+  period: 2021
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: true
+        adjusted_gross_income_person: 39_000
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+      person2:
+        savers_credit_eligible_person: true
+        adjusted_gross_income_person: 50_000
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        savers_credit_agi_eligible: false
+        filing_status: JOINT
+  output:
+    savers_credit: 0
+
+- name: Head of household with AGI over a threshold but capped ira  
+  period: 2023
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: true
+        adjusted_gross_income_person: 39_000
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+      person2:
+        savers_credit_eligible_person: true
+        adjusted_gross_income_person: 0
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: HEAD_OF_HOUSEHOLD
+        savers_credit_agi_eligible: true
+  output:
+    savers_credit: 400

policyengine_us/tests/policy/baseline/gov/irs/credits/retirement_saving/retirement_saving_eligible_person.yaml

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+- name: eligible person
+  period: 2021
+  input:
+    age: 20
+    is_tax_unit_head: true
+    claimed_as_dependent_on_another_return: false
+    is_full_time_student: false
+  output:
+    savers_credit_eligible_person: true
+
+- name: Not an eligible person, under age threshold  
+  period: 2021
+  input:
+    age: 17
+    is_tax_unit_spouse: true
+    spouse_is_dependent_elsewhere: false
+    is_full_time_student: false
+  output:
+    savers_credit_eligible_person: false