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How you can get up to $1,000 in tax credits

How you can get up to $1,000 in tax credits. Contribute to our 401(k) plan!. 1. Easy Money. Do you contribute to our 401(k) plan? Do you earn up to: $53,000 (filing jointly) $39,750 (head of household) $26,500 (single or married filing separately)

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How you can get up to $1,000 in tax credits

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  1. How you can get up to $1,000 in tax credits Contribute to our 401(k) plan! 1

  2. Easy Money • Do you contribute to our 401(k) plan? • Do you earn up to: • $53,000 (filing jointly) • $39,750 (head of household) • $26,500 (single or married filing separately) • You may be eligible for a credit against this year’s tax bill!

  3. You’re eligible if . . . You meet the income limits You’re at least 18 and not a full-time student No one can claim you as a dependent

  4. Income limits and credit amount

  5. An example of how it works • Kelly saves in our 401(k) plan • She meets the Saver’s Credit eligibility criteria • She files taxes jointly on adjusted gross income of $34,000 • She is eligible for a credit on 20% of her 401(k) contribution(based on the chart) Kelly’s 401(k) contribution for 2008: $2,000 Amount IRS considers for the credit: $2,000 Dollar value of the 20% credit: $400 • Kelly can apply the $400credit toward any federal tax she owes when she files her 2008 return 5

  6. An example of how it works • John saves in our 401(k) plan • He meets the Saver’s Credit eligibility criteria • He files taxes single on adjusted gross income of $22,000 • He is eligible for a credit on 10% of his 401(k) contribution(based on the chart) John’s 401(k) contribution for 2008: $2,000 Amount IRS considers for the credit: $2,000 Dollar value of the 10% credit: $200 • John can apply the $200credit toward any federal tax he owes when he files his 2008 return 6

  7. Other things to know • The credit applies only to contributions up to $2,000. • Withdrawals from qualified plans or IRAs in the current and two previous tax years affect the amount of the Saver’s Credit. • The Saver’s Credit is a “nonrefundable” tax credit. This means it can only be used to reduce the amount of taxes you owe.

  8. Why Save in our 401(k)? • Tax-preferred tool for building retirement savings • You may get up to $1,000 through the Saver’s Credit • Not in the 401(k)? Enroll Today! (Provide information on how to enroll)

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