Question

The Saver's Credit may be claimed by eligible taxpayers who make a contribution to a qualified retirement fund. Which one of these savings vehicles do NOT qualify for the Saver's Credit?

a. A mutual fund in a 401K account.
b. A mutual fund in a Roth IRA.
c. A nonrestricted saving's account.
d. A money market account in a traditional IRA

Answer 1

A nonrestricted savings account does not qualify for the Saver's Credit, while other retirement funds such as a 401K, Roth IRA, and traditional IRA can qualify.

Step-by-step explanation:

The Saver's Credit is a tax credit that can be claimed by eligible taxpayers who make a contribution to a qualified retirement fund. However, not all savings vehicles qualify for the Saver's Credit. In this case, the savings vehicle that does NOT qualify for the Saver's Credit is a nonrestricted saving's account.

A nonrestricted saving's account is not considered a qualified retirement fund and therefore does not meet the criteria for claiming the Saver's Credit. On the other hand, a mutual fund in a 401K account, a mutual fund in a Roth IRA, and a money market account in a traditional IRA are all considered qualified retirement funds and can potentially qualify for the Saver's Credit.

Answer 2

A nonrestricted savings account does not qualify for the Saver's Credit, while a mutual fund in a 401K account, a mutual fund in a Roth IRA, and a money market account in a traditional IRA do qualify.

Step-by-step explanation:

The Saver's Credit is a tax credit that can be claimed by eligible taxpayers who make contributions to qualified retirement funds. However, not all savings vehicles qualify for this credit.

Out of the options given, a nonrestricted savings account does not qualify for the Saver's Credit. This is because a nonrestricted savings account is not a qualified retirement fund.

The other options mentioned, such as a mutual fund in a 401K account, a mutual fund in a Roth IRA, and a money market account in a traditional IRA, all qualify for the Saver's Credit as they are considered qualified retirement funds.