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Tax Credits for Certain
Retirement Plan Participants

For taxable years 2002 through 2006, you may be eligible to claim a tax credit on your income tax return for contributions you make to the University's Tax-Deferred Retirement Plan or Supplemental Retirement Account. To be eligible, you must be at least 18 years of age by the end of the year and meet certain income thresholds. Full-time students and individuals who are claimed as dependents on someone else's tax return are not eligible.

The credit will apply to the amount you contributed up to $2,000, and ranges from 10% to 50%, depending on your tax filing status and gross income level, as shown in the table below. Both elective deferrals and after-tax contributions are eligible for the credit.

Tax Credit(% of amount contributed up to $2,000)

Adjusted Gross Income Based on Filing Status

Joint Return

Head of Household


Filing Separately


Up to $30,000

Up to $22,500

Up to $15,000


$30,001 to $32,500

$22,501 to $24,375

$15,001 to $16,250


$32,501 to $50,000

$24,376 to $37,500

$16,251 to $25,000


Over $50,000

Over $37,500

Over $25,000

Here are some additional considerations regarding this tax credit:

1) Adjusted gross income will have to be modified by adding in certain amounts of income otherwise excluded from income tax such as certain income from foreign sources.

2) Certain plan distributions must be an offset against the tax credit.

3) The credit will not reduce the taxes owed below the amount computed under the alternative minimum tax, if applicable.

Because of the complicated nature of the IRS provisions, it is suggested that you consult with your accountant or tax advisor on issues affecting your income tax return.

--Division of Human Resources

Almanac, Vol. 48, No. 29, April 9, 2002


April 9, 2002
Volume 48 Number 29

It's once again time to recognize excellence in teaching at Penn, with the Lindback and Provost's Awards. And the recipients are….

A political science professor is appointed to a term chair.

Four of Penn's schools make the grade on the top ten list of U.S. News graduate schools.
Observations on the experimental SAS Pilot Curriculum, including insights, accomplishments and challenges.
An graphic report on the University's FY 2002 Budget, as reported to Council.
Research Roundup: a few of the many Penn projects and studies shed light on interventions, risk-reductions, treatment strategies and post-traumatic stress.