January 19, 2016
Joseph Perry, partner-in-charge of Tax & Business Services, points to interest rates as a savings motivator, in an article by Associated Press.
By Carole Feldman
Saving for retirement might seem like a luxury to Americans living paycheck to paycheck, but the government is trying to make it a bit easier.
The saver's — or retirement savings contributions — credit is sometimes overlooked. Aimed at low‐ and moderate‐income workers, the credit "helps offset part of the first $2,000 workers voluntarily contribute to IRAs and 401(k) plans and similar workplace retirement programs," the Internal Revenue Service says.
Joseph Perry, partner in charge of the tax and business services at Marcum LLP, points to another reason why people might not have had an incentive to save: low interest rates. But with the Federal Reserve indicating interest rate increases in 2016, "it's possible we'll see some better returns. We might see more people willing to save."