U.S. ministers may be able to take a tax credit of up to $1,000 for contributions to their Nazarene 403(b) Retirement Savings Plan accounts in 2016. The Retirement Savings Contribution Credit (Saver’s Credit) was created by the Pension Protection Act of 2006 and continues to remain in effect. A couple filing jointly could be eligible for a tax credit of up to $2,000 ($1,000 each) if both contribute to their workplace savings plan and meet certain requirements. These include:

For the 2016 tax year, Adjusted Gross Income (AGI) cannot be more than:

• $61,500 if you are married and file a joint tax return
• $46,125 if you file as head of household on your tax return
• $30,750 if you file single, married filing separately or as a qualifying widow(er)

Additionally, claimants:

• Must be 18 or older by January 2 of the year for which the claim is being made
• Cannot be a full-time student
• Cannot be claimed as an exemption or dependent on another person’s tax return

For ministers, housing allowance is not included in determining AGI, which may further increase the amount of the credit.

Only voluntary contributions are eligible for the tax credit, and the amount of contributions eligible may be affected by any distributions received from the account during the year. For more details, visit the Internal Revenue Service website by clicking here.

Even if you cannot take advantage of this credit for the 2016 tax year, now’s a good time to start investing in your Nazarene 403(b) Retirement Savings Plan account to receive it for 2017. To enroll in the Nazarene 403(b) Retirement Savings Plan, phone Fidelity Investments at 800-343‐0860.

--Pensions and Benefits USA