As America Saves Week approaches at the end of February (February 25-March 2), there is an opportunity to promote a valuable way for low- and middle-income Americans to save for retirement.

The campaign is the brainchild of the Consumer Federation of America, a nonprofit collective of consumer education organizations that aims to help people learn more about money, debt and savings, and to organize their finances. The America Saves website offers numerous stories of people and communities that have benefited from this assistance.

Among the array of savings methods that might appeal to PERA members is the Saver’s Credit. Formerly known as the Retirement Savings Contributions Credit, the Saver’s Credit provides a nonrefundable tax credit worth up to $2,000 ($4,000 for joint filers) to eligible low- and middle-income taxpayers who make contributions to retirement savings accounts such as an IRA or 401(k).

The credit reduces an eligible worker’s tax bill dollar for dollar, helping to offset the cost of funding a retirement account. Saver’s Credit recipients don’t need to be nearing retirement but must be 18 or older and cannot be full-time students or claimed as a dependent on someone else’s tax return.

(If this is the first you’re hearing of this, don’t feel bad: According to TurboTax, only 12 percent of American households with annual incomes under $50,000 realize it’s available to them.)

For 2019, the maximum adjusted gross income to be eligible for the credit is $32,000 per year for single filers, $48,000 for heads of household, and $64,000 for joint filers. Retirement contributions earn a credit of between 10 and 50 percent of the savings amount, depending on level of income, up to the $1,000 maximum. And it’s not a one-time offering. As long as your income meets the requirements, you’re eligible, though the credit decreases as income rises.

The Saver’s Credit was recently cited by retirement experts as being a critical part of helping solve America’s growing retirement crisis, along with promoting automatic retirement savings plans. “By combining [such] automatic retirement savings with a transformation of the Saver’s Credit, Congress can boldly lead America and produce measurable progress for a majority of America’s workers,” said Diane Oakley, executive director of the National Institute on Retirement Security, during her testimony in a February House Ways and Means Committee hearing on the issue. “Acting sooner rather than later will greatly improve our future retirement security.”

Eligible Saver’s Credit participants can claim the credit by using Form 8880, “Credit for Qualified Retirement Savings Contributions.” Visit the IRS website to download the form and review the program’s specific requirements and procedures.