The Maximum Contribution Amount for the Retirement Savings Contributions Credit

question 36

True/False

The maximum contribution amount for the retirement savings contributions credit for each tax year is 20% of a taxpayer's AGI.

---

Definitions:

Disposable Income

The sum of money households can spend or save once income taxes have been deducted.

Saving

The process of setting aside a portion of current income for future use, typically to achieve long-term financial goals or provide a safety net.

Corporation's Capitalization

The total value of a corporation's issued shares of stock, debt, and other financial instruments, representing the company's funding structure.

Corporate Stock

Equity instruments that signify an ownership position in a corporation, entitling the holder to a portion of the company's assets and profits.