Eligibility Requirements (continued)

To be eligible for the credit, the taxpayer must have contributed to a qualified plan. Plans that qualify are traditional IRAs, Roth IRAs, and:

• Salary reduction contributions (elective deferrals, including amounts designated as after-tax Roth contributions) to a:
  • 401(k) plan—including a SIMPLE 401(k) and the federal Thrift Savings Plan
  • 403(b) annuity
  • Governmental 457 plan
  • SIMPLE IRA plan
  • Salary reduction SEP
  • 501(c)(18)(D) plan
• Voluntary after-tax employee contributions to tax-qualified retirement plan or section 403(b) annuity plan. Contributions made as a condition of employment are not considered to be voluntary.

Contributions designated under Internal Revenue Code section 414(h)(2) are treated as employer contributions and are not voluntary contributions made by the employee. They do not qualify for the credit and should not be included on Form 8880, line 2. This information is stated in the Form 8880 Instructions.