The IRS Saver’s Match Program

Tax Tips / By

The IRS has announced a program starting in 2027 where the federal government will match up to 50% of money you save for retirement. The Saver’s Match program is designed for people with low to moderate income. An eligible person can make contributions to their personal IRA, then claim the federal match when they file their 2027 federal tax return. The federal government matches up to 50% of what you contribute with a maximum match of $1,000 per year. The matching funds will be deposited directly into your designated retirement account.

Eligibility requirements

To qualify, a taxpayer must meet all these requirements:

  • You made contributions to your retirement plan in 2027
  • You reached age 18 by the end of the tax year
  • You are not a student of any FAFSA school
  • You are not claimed as a dependent on another person’s tax return
  • You are a United States resident for tax purposes

Income Limits

Qualifying for the Saver’s Match depends on gross income and filing status.

How to prepare for the Saver’s Match

In 2027 take these steps:

  • Open and contribute what you can to an eligible retirement plan (no amount is too small). Eligible retirement plans include a traditional IRA, Roth IRA, 401(k), 403(b), or governmental 457(b) plan
  • A $2,000 annual contribution to the retirement account will max out the additional government contribution of $1,000
  • If you can’t contribute to an existing plan, open one. This can be done with many brokerage firms online in minutes at https://www.investopedia.com/the-best-ira-brokers-8764115
  • Keep records of your total annual contribution to the account
  • File form 8880-A with your 2027 federal tax return

FAQ

  • The Saver’s Match program is replacing the Saver’s Credit for contributions made to a retirement plan
  • The Saver’s Match program begins January 1st, 2027 and was enacted as part of the SECURE 2.0 Act of 2022
  • Contributions made to ABLE accounts could still be eligible for the Saver’s Credit
  • Saver’s Match income limits are based on modified adjusted gross income (MAGI)
  • A US Government compound interest calculator can be found here
  • The Saver’s Match phases out at certain income limits. As your income increases, the match rate decreases or completely phases out

This material is compiled from sources SST believes to be reliable. The possibility of error does exist. The material is intended only as educational and may omit information on exceptions, qualifications, definitions, and effective dates. The reader should not rely solely on this material but should review original sources to determine the law and applicability for each situation. Neither the author nor Solid State Tax Service, LLC will be responsible for any error, omission, or inaccuracy under any circumstance.