Saver’s Match: a 50% federal match from 2027

A deposit, not a credit

Up to 50% of what you save, up to $1,000 a year.

The IRS describes the Saver’s Match as a new federal program for people with low and moderate incomes. If you are eligible and contribute to a retirement plan or IRA for 2027, you claim the match on your 2027 federal tax return, filed in 2028, and the government deposits up to 50% of your contribution — up to $1,000 per person each year — directly into the retirement account you designate. On a joint return, each spouse can get a match. The IRS’s own example: $20 a month, $240 for the year, brings a $120 match, $360 in all. You can qualify even if you owe little or no federal income tax.

Who qualifies

Five basic requirements, plus an income limit.

• You contribute to a 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 the tax code defines one.
• No one claims you as a dependent.
• You are a U.S. resident for tax purposes. Bona fide residents of U.S. territories claim through their territory’s tax agency.

Eligible plans include 401(k), 403(b), and governmental 457(b) plans, and traditional or Roth IRAs.

Income limits

The match shrinks as income rises.

The test uses modified adjusted gross income, which for the Saver’s Match adds back certain amounts, including pre-tax retirement contributions and excluded foreign income. A worker earning $38,000 who puts $3,000 into a pre-tax 401(k) has an AGI of $35,000 but a Saver’s Match MAGI of about $38,000. The limits will be adjusted for inflation after 2027.

What happens to the Saver’s Credit

It continues through 2026, then narrows.

For 2027, the IRS says the Saver’s Match replaces the Saver’s Credit for retirement plan and IRA contributions; you cannot get both for the same contribution. Contributions to ABLE accounts may still qualify for the Saver’s Credit. For 2026 contributions the Saver’s Credit works as before. Its 2026 income limits, from IR-2025-111, are $80,500 for married couples filing jointly, $60,375 for heads of household, and $40,250 for singles and married people filing separately.

How to get ready

Nothing to do in 2026; contribute in 2027 and claim in 2028.

1. 2026: the IRS says you do not need to do anything for the match.
2. 2027: contribute to a workplace plan, or open a traditional or Roth IRA if you have no plan. Starting in 2027, TrumpIRA.gov will list financial institutions that offer IRAs and accept Saver’s Match contributions. Keep records of what you contribute.
3. 2028: file Form 8880-A with your 2027 return to claim the match.

The match is retirement money: the IRS warns that withdrawals before age 59½ may be subject to additional taxes and restrictions. For the 2026 contribution limits, see the 401(k) limits and the Roth IRA income limits.