Federal Regulators Seek Comments on Saver’s Match Contributions

The Internal Revenue Service and Treasury Department put out a request for comments on Thursday for issues related to the SECURE Act 2.0 provision that creates a federal Saver’s Match, under which the federal government would contribute up to $2,000 annually to an individual’s defined contribution plan or individual retirement account. 

The Saver’s Match, scheduled to begin in 2027, would replace the Saver’s Credit, a nonrefundable tax credit. It is intended to increase retirement savings for low-to-moderate income Americans. The match would be paid by Treasury to a retirement plan or non-Roth IRA designated by an individual claiming the contribution, according to the regulators’ notice.

The amount of an individual’s Saver’s Match contribution will depend on the individual’s income or joint income level. “For example, for a married individual filing jointly, the Saver’s Match contribution phases out completely at a joint income of $71,000, and, for a single filer, the Saver’s Match contribution phases out completely at an income of $35,500,” the notice states.

The $2,000 maximum amount of qualified retirement savings contributions under the Saver’s Match is not indexed for inflation, however, the modified adjusted gross income levels in the phaseout range are indexed. The tax code sets eligibility for a Saver’s Match contribution as a person who is 18 in the taxable year in question, except for full-time students, anyone who is claimed as a dependent on another taxpayer’s return for that taxable year or is a nonresident alien meeting certain conditions.

The federal government is seeking specific comments on a series of topics regarding the Saver’s Match contributions including:

Eligibility, claiming, reporting, disclosure, how the receiving account would be designated or identified, the process for completing contributions, and how the federal government would recover taxes on certain specified early distributions of contributions.

They are also asking for comment on how Treasury and the IRS could ensure that individuals in underserved communities know how to participate and receive the full benefits of Saver’s Match contributions.

The notice asks prospective commenters to address a series of 29 questions on different aspects of the program and its operation.

SECURE 2.0 requires the Treasury Department to take steps to increase public awareness of Saver’s Match contributions, and to provide a report to Congress no later than July 1, 2026, summarizing the anticipated promotional efforts.

Comments are requested by November 4, either at www.regulations.gov or by mailing the comments to Internal Revenue Service, CC:PA:01:PR (Notice 2024-65), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.