IRS Notifies Taxpayers of New Saver's Match Program

The Internal Revenue Service has started distributing CP321J notices to taxpayers who may qualify for the Saver's Match, a retirement cash contribution program debuting in the 2027 tax year. Authorized by the 2022 Secure 2.0 legislation, the program replaces the previous nonrefundable saver's credit with a direct government match of up to 50% of retirement contributions.

Eligible single filers can receive up to $1,000 annually, while joint filers can receive up to $2,000. To qualify, single filers must have a modified adjusted gross income of $35,499 or less, and joint filers must earn up to $70,999, though matching rates decrease for those in higher income brackets. Taxpayers will claim these benefits using Form 8880-A when filing in 2028.

The United States Department of the Treasury and the IRS are currently evaluating the use of a conduit traditional IRA to enable Roth IRA savers to receive the match through a taxable conversion. To assist workers with comparison and enrollment in IRAs, the government will launch a new website, TrumpIRA.gov, on January 1.