One of my favorite tax credits in the entire U.S. tax code was the Saver’s Credit (aka the ‘Retirement Savings Contribution Credit’). With that credit, income-eligible individuals could get up to a 50% non-refundable tax credit on up to a $2,000 contribution to an IRS-qualified retirement plan. Big news: the Saver’s Credit is being replaced by the new ‘Saver’s Match’ starting in 2027 for eligible retirement savers. This is a significant change in that the Saver’s Match is an actual government contribution to a retirement account, rather than simply a tax credit. In this article, we’ll cover the Saver’s Match basics, including match amounts, income eligibility, how the match works, how to claim it, FAQs, and more.
What is the Saver’s Match?
The Saver’s Match is a new U.S. federal government matching contribution of up to $1,000 per year, deposited into retirement accounts of eligible low and moderate income retirement savers, starting in the 2027 tax year. The Saver’s Match is an actual government matching contribution to a retirement account – not a tax credit as the Saver’s Credit was. Congress created it in section 103 of the SECURE 2.0 Act legislation, which added section 6433 to the IRS’s tax code, replacing the Saver’s Credit.
The Saver’s Match is expected to benefit more low-income taxpayers who previously couldn’t take full advantage of the Saver’s Credit because they owed little or no federal income tax. Unlike the former nonrefundable credit, the new matching contribution can be deposited into an eligible retirement account even when the taxpayer has no federal income tax liability. However, the income eligibility thresholds and income calculation methods are different, so not everyone who qualified for the former credit will qualify for the new match.
The IRS and Treasury described how they expect the Saver’s Match to work in Notice 2026-48, released August 7, 2026. It is a notice of intent to issue regulations but is not final, so details may change.
What is Happening to the Saver’s Credit?
Oddly enough, the Saver’s Credit will live on in 2027 and beyond, but only for eligible contributions to ABLE accounts, which are tax-advantaged savings and investment account for individuals with disabilities and their families, established under Section 529A of the Internal Revenue Code.
How to Get the Saver’s Match
Saver’s Match matching funds will go into a retirement plan or IRA and grow alongside your own contributions, when you claim the Saver’s Match on your tax return. To claim the Saver’s Match, the following will need to take place, starting in 2027:
- If you are able to contribute to an eligible retirement plan or have either a traditional or Roth IRA, start or continue contributing to the plan or IRA.
- Keep records of your contributions.
- In 2028, you can claim the Saver’s Match by filing Form 8880-A with your 2027 federal tax return.
You must claim the match every year (you only receive it in the years you claim it and are eligible).
The IRS has provided some initial guidance on how the matching funds will be distributed. Generally, the government will deposit the matching contribution directly into the eligible retirement account designated by the taxpayer, as soon as practicable after the taxpayer files their federal tax return. However, the IRS is still developing some of the procedures for directing the funds to different types of retirement accounts, and not all retirement plans are required to accept these contributions. Stay tuned for more info as the process is ironed out.
2027 Saver’s Match Income Eligibility Threshold Limits
Saver’s Match matching contribution percentages and amounts are based on your modified adjusted gross income (MAGI). As your income increases, the match rate decreases. The thresholds are as follows:
| Filing status: | Full match (50%) | Partial match | No match |
|---|---|---|---|
| Married Filing Jointly or Qualifying Surviving Spouse | Up to $41,000 | $41,001-$70,999 | $71,000 and above |
| Head of Household | Up to $30,750 | $30,751-$53,249 | $53,250 and above |
| Single or Married Filing Separately | Up to $20,500 | $20,501-$35,499 | $35,500 and above |
Non-Income Saver’s Match Eligibility Requirements
In addition to the income eligibility thresholds, in order to qualify for the Saver’s Match, you must meet all of the following eligibility requirements:
- You make contributions to your retirement plan or IRA (there is no minimum amount)
- You are 18 by the end of the tax year
- You are not a student as defined in section 152(f)(2)
- You are not claimed as a dependent on another person’s return
- You are a U.S. resident for tax purposes (generally nonresidents do not qualify.)
How Much is the Saver’s Match in 2027?
For eligible individuals, the Saver’s Match in 2027 is 50% of your first $2,000 in qualified retirement savings contributions, meaning the most you could receive is $1,000. The match percentage phases down as income increases up to the maximum income eligibility threshold (see table below). Income eligibility thresholds will be indexed to inflation, but the maximum match amount is not.
For joint filers, the couple’s combined MAGI determines the applicable matching percentage for both spouses, but each spouse’s qualifying contributions determine their individual match. If both spouses are eligible and each contributes at least $2,000, a couple with joint MAGI at or below the income limits could receive up to $2,000 combined ($1,000 each). If one spouse contributes nothing, that spouse gets no match, and it does not transfer to the other spouse.
Saver’s Credit and Saver’s Match Comparison
Here is a breakdown comparison of the Saver’s Match and Saver’s Credit:
| Saver's Match | Saver's Credit | |
|---|---|---|
| Tax Years Active: | 2027 and beyond | Through 2026 (continuing in 2027 for ABLE Accounts only) |
| How you Get it: | Deposited into your retirement account | Nonrefundable tax credit (for ABLE beneficiary only starting in 2027) |
| Maximum Match/Credit: | $1,000 per individual | $1,000 per individual through 2026, $1,050 in 2027 (and indexed to inflation) |
| Maximum Contribution Base for Match/Credit Calculation: | $2,000 per individual | $2,000 per individual through 2026, $2,100 in 2027 (indexed to inflation) |
| Minimum Contribution Base for Match/Credit Calculation: | Greater than $0 | Greater than $0 |
| Percent Match/Credit: | up to 50%, gradually phased out (not in steps as the Saver's Credit is) | Steps of 50%, 20% or 10% by income |
| Income Eligibility Limit: | 2027: - $71,000 married jointly - $53,250 head of household - $35,500 single/others | 2027: - $83,000 married jointly - $62,250 head of household - $41,500 single/others |
| IRS Tax Form to File to Claim: | Form 8880-A | Form 8880 |
Saver’s Match FAQs
What Type of Plan Contributions are Eligible for the Match?
According to Notice 2026-48, qualifying contributions will include:
- Traditional and Roth IRA contributions.
- Elective deferrals to 401K plans, including SIMPLE 401K plans.
- 403B plan contributions.
- Governmental 457B plan contributions.
- Salary-reduction contributions to SIMPLE IRAs.
- Salary-reduction contributions to SEP arrangements.
- Voluntary after-tax employee contributions to qualified retirement plans.
- Contributions to certain 501(c)(18) plans.
Could you Get Both the Saver’s Credit and the Saver’s Match?
Technically, it is possible to get both the Saver’s Credit and Saver’s Match, starting in 2027. However, you would not receive both for the same contribution. As noted above, the Saver’s Credit is only for eligible ABLE account contributions, while the Saver’s Match is for eligible retirement account contributions (e.g. 401K, IRA, etc.).
Does the Government Match Count Against Retirement Contribution Limits?
It’s worth highlighting that government matching funds do not count against matching retirement contribution limits (e.g. the maximum 401K contribution or maximum IRA contribution).
Are Roth Contributions Matched into Roth Accounts?
Although Roth IRA and Roth employer-plan contributions qualify when calculating your Saver’s Match, the matching funds generally cannot be deposited directly into a Roth retirement account. For Roth IRAs, the IRS is considering a process involving an initial deposit into a traditional IRA followed by a Roth conversion, but the details on this have not been finalized and would be taxable. For employer-sponsored retirement plans, matching funds must be directed to an eligible non-Roth portion of the plan.
What was the CP321J Notice from the IRS?
Different groups of taxpayers (including those who claimed the Saver’s Credit on their 2025 tax return or whose 2025 income was otherwise in the range of Saver’s Match eligibility) received a ‘CP321J Notice‘ from the IRS, informing them of their potential eligibility for the Saver’s Match in 2027. This was a legitimate IRS letter – not a scam.
Note that receiving a CP321J notice does not guarantee eligibility in 2027. Actual eligibility will depend on 2027 income, contributions, filing status, and the other requirements.