What are the eligibility requirements for the Saver’s Credit?

The eligibility requirements for the Saver's Credit specifically state that taxpayers must meet certain income limits and make contributions to qualified retirement plans. This includes accounts such as 401(k)s, IRAs, and similar retirement savings accounts. The credit is designed to encourage low- to moderate-income individuals to save for retirement.

To qualify, individuals must have adjusted gross income (AGI) below specified thresholds that vary based on filing status. Additionally, they must be contributing to a retirement account, meaning that the credit incentivizes both maintaining income below a certain level and taking proactive steps toward retirement savings. This makes option B the correct choice as it aligns perfectly with the requirements set forth by the IRS for obtaining the Saver's Credit.