The IRS is mailing notices to taxpayers who claimed the Saver’s Credit on their 2025 returns. No action is needed until 2027 contributions begin.
Credit: Hispanolistic / Getty Images Key Takeaways
The IRS has begun mailing notices to taxpayers who claimed the Saver’s Credit on their 2025 returns or whose 2025 income is within the eligible range.
Starting with the 2027 tax year, low- and moderate-income workers may receive matching retirement contributions of up to $1,000 a year from the Treasury Department.
The Saver’s Match, created by a 2022 federal law, replaces the Saver’s Credit for 2027 contributions.
For more than two decades, a federal benefit designed to help low-income workers save for retirement has mostly failed to reach them.
That is set to change in 2027, when the Saver’s Match, created under the SECURE 2.0 Act of 2022, replaces the Saver’s Credit. The IRS has started sending notices to taxpayers who claimed the Saver’s Credit on their 2025 return or whose 2025 income was in the range of eligibility for the new match. The notice doesn’t require any action yet—it just directs recipients to keep contributing to a workplace plan or IRA, or to open an IRA so that they can claim the match on their 2027 return.
Under the Saver’s Match, low-income workers who contribute to a retirement account like a 401(k) or IRA can have the Treasury Department deposit matching contributions directly into the account. For those who qualify, the switch could mean an extra $1,000 in their retirement savings—$2,000 for joint filers.
What This Means For You
Some taxpayers will receive a boost from the federal government when saving for retirement next year. However, to be eligible for the Saver’s Match, you must meet the income limits, contribute to a retirement account, and claim the match on your 2027 tax return in 2028.
Eligibility for the Saver’s Match is based on income: single filers with a modified adjusted gross income (MAGI) of $20,500 or less in 2027 ($41,000 for joint filers and $30,750 for heads of household) are eligible for a 50% match on up to $2,000 of their contributions. For couples filing jointly, each spouse can qualify for a match on their own contributions. This means a taxpayer who contributes $2,000 would receive a $1,000 match.
The match shrinks for single filers with MAGI of $20,501 to $35,499 ($41,001 to $70,999 for joint filers; $30,751 to $53,249 for heads of household). At $35,500, $71,000, or $53,250 and above, there’s no match. These limits will be adjusted for inflation after 2027.
A worker doesn’t need to owe taxes to be eligible for the Saver’s Match. The match isn’t taxed when it’s deposited; like a traditional retirement contribution, it’s taxed only when withdrawn.
In April, President Donald Trump signed an executive order to steer more workers toward the Saver’s Match.
The order directs the Treasury Department to create TrumpIRA.gov by the start of 2027. The site will let workers compare individual retirement accounts that meet federal standards for cost, transparency, and fiduciary responsibility.
Treasury and the IRS issued a notice in August laying out proposed rules. Two things stand out. Retirement plans and IRA providers aren’t required to accept the match, so savers may need to open an IRA with a provider that does—TrumpIRA.gov will list them. And if your match would be lower than $100, you can take it as a refundable tax credit instead of a deposit.
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