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The Definitive Guide to the Saver’s Match

This webpage provides a definitive guide to the Saver’s Match program, which will replace the Saver’s Credit effective for tax years following December 31, 2026. For qualified retirement savers, the Saver’s Match will provide a federal matching contribution up to 50% of the first $2,000 of annual workplace retirement plan or IRA contributions per individual, for a maximum matching contribution of $1,000 per tax year.

Topics Addressed:

  • What is the Saver’s Match?
  • Why is the Saver’s Match an Important Retirement Savings Public Policy Initiative?
  • Why is the Saver’s Match an Improvement Over the Saver’s Credit?
  • Who Qualifies to Receive a Saver’s Match?
  • How Much Are the Matching Contributions That Individuals Can Receive?
  • When Does the Saver’s Match Go into Effect?
  • How Many People Will Qualify for the Saver’s Match?
  • Who Will Benefit from the Saver’s Match?
  • What Challenges Could Face the Saver’s Match Program?
  • What’s Next for the Saver’s Match Program?
  • Where Can I Learn More About the Saver’s Match?

What is the Saver’s Match?
ANSWER: The Saver’s Match is a federal program enacted as part of the SECURE 2.0 Act of 2022, and as set forth in Section 103. This law repeals and replaces current law, which provides a nonrefundable tax credit (“Saver’s Credit”) for certain individuals who make contributions to workplace retirement plans or to IRAs, with a federal matching contribution that must be deposited into a taxpayer’s IRA or qualified retirement plan.

Why is the Saver’s Match an Important Retirement Savings Public Policy Initiative?
The Saver’s Match is a vitally important retirement savings public policy initiative because it will:

  • Be big, affecting, at minimum, 21.9 million savers on an annual basis.
  • Positively shape savings behaviors, potentially incentivizing an additional 8.5 million new savers.
  • Disproportionately benefit minorities, lower-income, women and younger savers.
  • Improve the retirement savings outcomes of millions of under-saved workers.

Why is the Saver’s Match an Improvement Over the Saver’s Credit?
Whereas the Saver’s Credit only provides a tax credit to offset taxes payable, the Saver’s Match is a matching cash contribution directly deposited into a qualified retirement account in the name of the qualified saver. In addition, the Saver’s Credit phased out precipitously at specific income levels, while the Saver’s Match will phase out gradually as incomes rise.

Who Qualifies to Receive a Saver’s Match?
The match is based upon modified adjusted gross income (AGI) and phases out between $20,500 and $35,500 for single filers, between $30,750 and $53,250 for head of household filers, and between $41,000 and $71,000 for joint filers.

How Much Are the Matching Contributions That Individuals Can Receive?
The match is 50 percent of annual contributions, up to $2,000 per individual, for a maximum matching contribution of $1,000 per individual per tax year. However, as explained above, the matching rate phases out on a straight-line basis between $20,500 and $35,500 for single filers, between $30,750 and $53,250 for head of household filers, and between $41,000 and $71,000 for joint filers.

For a taxpayer making a $2,000 contribution, the federal matching contributions below would apply at various modified AGI levels and taxpayer filing status.

Table 1: Calculation of Match, by AGI & Filing Status (assumes $2,000 contribution)






For a more tailored estimate, visit the RCH Saver’s Match Estimator, which will help you understand if you could be eligible to receive a matching contribution based on your modified AGI, tax filing status and retirement plan contributions, and will estimate the size of the matching contribution that you could receive under the program.

When Does the Saver’s Match Go into Effect?
The Saver’s Match will be applicable to tax years beginning January 1, 2027.

How Many People Will Qualify for the Saver’s Match?
The Employee Benefit Research Institute (EBRI)’s Issue Brief No. 602 (Sizing the Market for the Saver’s Match, 2024), found that in 2018, out of a population of 69 million tax filers with qualifying AGI and filing status, 21.9 million made contributions to a qualified retirement account and would thus be eligible to receive a Saver’s Match.

This included a population of 18.9 defined contribution plan participants, 1.0 million IRA accountholders and 2.0 million Roth IRA accountholders. It is generally accepted that, by 2027, these figures could be significantly higher.

Who Will Benefit from the Saver’s Match?
In general, the Saver’s Match program – because of its income qualifications – is designed to benefit lower-income earners, who tend to be disproportionately comprised of younger workers, women and minorities.

Research that assesses Saver’s Match benefits by specific demographic segments is still evolving.

An April 2024 survey by Boston Research Technologies (BRT) and Retirement Clearinghouse (RCH) found that:

  • Black and Hispanic savers will comprise a larger percentage of those projected to receive federal matching contributions under the program, versus their general plan participation levels
  • Eligible Black and Hispanic savers who receive matching contributions will tend to be younger and will have lower incomes and retirement savings account balances than their White counterparts.

These data points suggest that Black and Hispanic savers could derive disproportional benefit from the Saver’s Match program.

Additionally, research conducted by the Collaborative for Equitable Retirement Savings (CFERS), comprised of Morningstar, The Aspen Institute’ Financial Security Program and DCIIA, projects that the Saver’s Match could be highly effective in mitigating race and gender disparities in 401(k) plans, projecting significant increases in account balance/salary ratios for minorities and for women, with the largest increases projected for Black and Hispanic women.

What Challenges Could Face the Saver’s Match Program?
Considering the sheer size of the Saver’s Match program, along with the fact that the volumes would be experienced on an annual basis, it is not hard to imagine the operational challenges associated with these volumes.

In a June 2024 panel presentation to the Women’s Institute for a Secure Retirement (WISER), RCH President & CEO Spencer Williams addressed the impact that a highly mobile workforce, combined with plan-driven changes could have on the 18.9 million eligible savers contributing to a workplace plan. Williams’ figures suggest that, by tax filing time, over one-third (7.2 million) could have left their plan or find themselves impacted by a plan-driven change (ex. – change of service provider, plan termination).

What’s Next for the Saver’s Match Program?
As noted above, the Saver’s Match will be applicable to tax years beginning January 1, 2027, so the period preceding 2027 will likely require significant design and implementation efforts, as well as associated regulations and taxpayer education, all overseen by the U.S. Department of Treasury and the Internal Revenue Service.


Where Can I Learn More About the Saver’s Match?

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