IRAs Will Offer a Saver’s Match Starting Next Year—Here’s How It Will Work

Key Takeaways

• Starting in 2027, low-income workers may be eligible to receive matching retirement contributions from the Treasury Department.
• The Saver’s Match was passed in a 2022 federal law and will replace the Saver’s Credit at the beginning of next year.

For more than two decades, a federal benefit designed to help low-income workers save for retirement has mostly failed to reach them.

That is set to change in 2027, when the Saver’s Match, created under the SECURE 2.0 Act of 2022, replaces the Saver’s Credit, a nonrefundable tax credit that low-income savers largely couldn’t use since they owe little or no taxes. For those who qualify, the switch could mean an extra $1,000 in their retirement savings.1,2

Under the Saver’s Match, low-income workers who contribute to a retirement account will receive matching contributions deposited directly by the Treasury Department.

What This Means For You

Some taxpayers will receive a boost from the federal government when saving for retirement next year. However, to be eligible for the Saver’s Match, workers must meet income requirements and contribute to a retirement account.

Eligibility for the Saver’s Match is based on income: single filers with a modified adjusted gross income of $20,500 or less in 2027 (or $41,000 for joint filers) are eligible to receive a 50% match on up to $2,000 of their contributions. This means a taxpayer who contributes $2,000 would receive a $1,000 match.

The Saver’s Match phases out for single filers earning between $20,500 and $35,500 ($41,000 to $71,000 for those filing jointly), meaning they can still qualify for a smaller match.3

A worker doesn’t need to owe taxes to be eligible for the Saver’s Match. The match isn’t taxed when it’s deposited; like a traditional retirement contribution, it’s taxed only when withdrawn.

In April, President Donald Trump signed an executive order aimed at steering more workers toward the Saver’s Match.

The order directs the Treasury Department to create TrumpIRA.gov by the start of 2027. The site will let workers compare individual retirement accounts that meet federal standards for cost, transparency, and fiduciary responsibility.

Article Sources

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1. Charles Schwab. "What Is the Saver's Credit and How Does It Work?"
2. United States Senate Committee on Finance. "SECURE 2.0 Act of 2022." page 1.
3. Alight. "The SECURE 2.0 Saver’s Match: What plan sponsors should know."