Authorized by the 2022 Secure 2.0 retirement legislation, the Saver’s Match program will provide income-eligible retirement savers with a matching annual contribution worth up to $1,000 for single tax filers and $2,000 for joint filers. They can receive that benefit whether they save through a workplace plan like a 401(k)<\/a> or an individual retirement account<\/a>. <\/p>\n The catch: Although contributions to an IRA may qualify workers for the match, any money the worker is entitled to can only go into a traditional IRA \u2014 not a Roth IRA<\/a>. This means that workers who save via a Roth \u2014 including nearly all of those enrolled in state-run auto IRA programs<\/a> \u2014 would need a traditional account to receive the match, experts say.<\/p>\n As of April 30, more than 1.2 million accounts in the state programs held $3 billion in assets, according to <\/a>Center for Retirement Initiatives at Georgetown University.<\/p>\n Read more CNBC personal finance coverage<\/p>\n “State programs absolutely want, can and will help their participants take advantage of the [Saver’s Match], because these participants are exactly the low- to moderate-income workers<\/a> the match was designed for,” said Angela Antonelli, executive director for the center.<\/p>\n “But there is unnecessary administrative complexity because the match must be deposited into a traditional IRA, while state programs default savers into a Roth IRA,” Antonelli said.<\/p>\n A White House official said in an email response to a CNBC inquiry that “although specific operational elements of the Saver’s Match are still being developed, the expectation is to ultimately allow for both traditional and Roth IRAs.”<\/p>\n However, it could take an act of Congress<\/a> to allow the money to go into a Roth, experts say.<\/p>\n “It’s in the law,” said Ed Slott, an IRA expert and certified public accountant. “It specifically says the match can only go to pre-tax accounts, which is kind of weird because contributing to a Roth qualifies for the match, which can’t go into the Roth.”<\/p>\n Who will qualify for the Saver’s Match<\/p>\n Under the Saver’s Match program, single taxpayers with annual income up to $20,500 or joint filers earning up to $41,000 will be able to qualify for a government match equal to 50% of retirement contributions up to $2,000, for a maximum yearly match of $1,000. Single filers with annual incomes of between $20,500 and $35,500 will qualify for reduced matching contributions, as will joint filers making up to $71,000.<\/p>\n The program is replacing the so-called saver’s credit<\/a>, which continues to be available through the 2026 tax year<\/a> for lower- and moderate-income retirement savers. While similar to the Saver’s Match \u2014 it’s worth a maximum of $1,000 for single filers and $2,000 for joint filers, depending on income \u2014 it is a tax credit that is nonrefundable, meaning it can only be used to reduce your tax burden rather than boost a refund.<\/p>\n The new Saver’s Match is part of an ongoing broader effort to help workers better save for retirement. An estimated 53.7 million full-time and part-time workers between the ages of 18 and 65 lack access to any employer-based retirement plan, according to 2025 research from the Economic Innovation Group<\/a>, a bipartisan public policy group.<\/p>\n A new website, TrumpIRA.gov, is expected to launch next year<\/a> for workers to enroll in IRAs and, if eligible, collect the Saver’s Match when it is distributed.<\/p>\n While the Treasury Department has not yet issued any related guidance, experts expect that the match would be given once a worker’s 2027 tax return is filed in early 2028. The agency did not respond to a CNBC inquiry seeking more information.<\/p>\n Less than 1% in state programs choose a traditional IRA<\/p>\n Meanwhile, 17 states now have active retirement programs for workers who lack a company-sponsored plan. Hawaii<\/a> is expected to become the 18th state later this year. Although there are some minor differences among these programs, most involve employees being automatically enrolled in Roth IRAs through a payroll deduction \u2014 starting around 3% or 5% \u2014 unless they opt out.<\/p>\n Generally, the pre-tax money that’s deposited in traditional IRAs cannot be withdrawn before age 59\u00bd without paying a 10% early-withdrawal tax penalty, unless an exception is met.<\/p>\n With Roth IRAs, however, savers generally can withdraw their contributions at any time without taxes or penalties because the money was contributed after-tax.<\/p>\n In an ideal world, if there was the ability to take those matched dollars into a Roth, I don’t think anyone would argue [with] that.<\/p>\n Courtney Eccles<\/p>\n Senior vice president of relationship management at Vestwell<\/p>\n While some of the state programs offer a traditional IRA if the worker wants it, less than 1% switch to one from the default Roth, according to Vestwell, a financial technology company that administers most of the state programs.\u00a0<\/p>\n “In an ideal world, if there was the ability to take those matched dollars into a Roth, I don’t think anyone would argue [with] that,” said Courtney Eccles, senior vice president of relationship management at Vestwell.<\/p>\n And, of course, the incompatibility will apply to retirement savers outside of the state programs as well.<\/p>\n “Anyone who is saving for retirement and the only vehicle they’re currently utilizing is a Roth IRA \u2014 they’re going to have the same potential concern whether they’re in a state program or not,” Eccles said.<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/05\/108304366-1778254542012-1778236638-45789590782-hd.jpg\")
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