Which credit pertains specifically to contributions made towards Thomas's retirement savings?

The Retirement Savings Contributions Credit, often referred to as the Saver's Credit, is specifically designed to incentivize individuals to save for retirement by contributing to eligible retirement accounts such as IRAs and 401(k) plans. This credit allows eligible taxpayers to receive a tax credit based on a percentage of their contributions, thus reducing their overall tax liability.

This credit aims to encourage retirement savings among lower to moderate-income individuals or families, providing a financial benefit for taking steps towards securing their financial future. By promoting contributions to retirement savings accounts, the Saver's Credit serves not only as an immediate tax benefit but also as a long-term strategy to enhance retirement readiness.

In contrast, the other credits mentioned serve different purposes: the Child and Dependent Care Credit is aimed at reducing expenses related to child care; the Premium Tax Credit assists individuals in affording health insurance coverage purchased through the Health Insurance Marketplace; and the Adoption Credit provides financial relief for costs associated with adopting a child. Each of these credits targets distinct areas of financial support, underscoring the importance of identifying the right credit corresponding to specific personal financial activities.