Starting in 2027, the federal government will put money into the retirement accounts of eligible lower- and moderate-income savers. The program is called the Saver's Match, and the IRS says it will match up to 50% of what you contribute, for a maximum of $1,000 per person per year. Nothing is required of you in 2026, but the rules reward people who know them before the year begins.
The basics
- What you get. A match of up to 50% on your contributions, capped at $1,000 a year per person. For married couples filing jointly, each spouse can qualify. Under Treasury and IRS Notice 2026-48, the match is calculated on up to $2,000 of qualified contributions, which is where the $1,000 cap comes from.
- Which accounts count. Contributions to a 401(k), a 403(b), a governmental 457(b), or a traditional or Roth IRA. Per the IRS, ABLE accounts are not eligible.
- Where the money goes. The match is deposited into a retirement account you designate, not paid to you as a check, so it grows alongside your own savings.
- When it starts. For contributions made for tax years beginning after December 31, 2026. You'll claim it on Form 8880-A, filed with your 2027 federal return in 2028.
The Saver's Match replaces the existing Saver's Credit for retirement plan and IRA contributions starting with tax year 2027. For 2026, the Saver's Credit still applies, with 2026 income limits of $80,500 for married couples filing jointly, $60,375 for heads of household, and $40,250 for singles and married individuals filing separately, according to the IRS 2026 limits announcement.
Who qualifies
The IRS lists several requirements, and you must meet all of them. You must be at least 18 by the end of the tax year, not a student as defined in section 152(f)(2) of the tax code, and not claimed as a dependent on someone else's return. You generally must also be a U.S. resident for tax purposes. You can qualify even if you owe little or no federal income tax, and there is no minimum contribution.
Income is measured by modified adjusted gross income, or MAGI. The match is full at the lower end, shrinks as income rises, and disappears at the cutoffs in the table.
| Filing status | Full 50% match | Partial match | No match |
|---|---|---|---|
| Single or married filing separately | Up to $20,500 | $20,501–$35,499 | $35,500 and above |
| Head of household | Up to $30,750 | $30,751–$53,249 | $53,250 and above |
| Married filing jointly or qualifying surviving spouse | Up to $41,000 | $41,001–$70,999 | $71,000 and above |
The IRS says the dollar thresholds will be adjusted for inflation after 2027.
How the phase-out works
Notice 2026-48 previews the formula. You subtract a number of percentage points from the 50% rate, equal to 50 times the share of the phase-out range your income has used, rounded down to a whole point. For a single filer, the match starts to shrink above $20,500 and runs out over a $15,000 range. For joint filers the range is $30,000, and for heads of household it's $22,500.
| MAGI | Match rate | Match |
|---|---|---|
| $20,500 | 50% | $1,000 |
| $25,000 | 35% | $700 |
| $30,000 | 19% | $380 |
| $35,000 | 2% | $40 |
| $35,500 | 0% | $0 |
The notice gives two examples of its own that check out against the formula. A single filer with $30,000 of MAGI who contributes $1,500 to an IRA receives $285. A married couple with $63,000 of combined MAGI is matched at 14%, which is $140 on a $1,000 contribution or $280 on $2,000.
How the money reaches your account
This is the part still being worked out. The notice describes the expected approach and asks the public for comment, so treat the details as a preview, not final rules.
- Traditional IRA. You designate the account on Form 8880-A, and the match is paid into it using an IRA tracking number tied to a registered provider.
- Roth IRA. The notice says the payment goes first to a Treasury-established traditional IRA, then transfers to your Roth IRA as a Roth conversion.
- Employer plans. The notice describes three options under consideration for 401(k), 403(b), and 457(b) accounts. The plan itself must also be amended before it can accept a match, so ask your plan administrator whether yours will.
- Small amounts. If your match would be under $100, you may elect to receive it as a refundable tax credit instead.
The notice also says a match can be reduced by certain distributions taken during a testing period. That period covers the two taxable years before the contribution year, the contribution year itself, and the time until your return is due, with rollovers and direct transfers excluded. It asks for comment on a Saver's Match recovery tax, and the IRS notes that withdrawals before age 59½ may carry additional taxes. Read the final rules before treating a match as a reason to contribute money you may need soon.
What to do now
- In 2026: nothing is required. If you're already saving, keep going.
- In 2027: contribute to an eligible plan or IRA. If you have neither, open an IRA. The notice says an executive order directs Treasury to launch a website, TrumpIRA.gov, by January 1, 2027, and expects it to list IRAs that accept Saver's Match contributions.
- Keep records of your contributions and your MAGI.
- In 2028: file Form 8880-A with your 2027 return to claim the match.
Public comments on the notice closed on October 5, 2026. The notice says Treasury and the IRS intend to propose regulations next, and the details above, particularly how matches reach employer plans and Roth IRAs, could change in them.
Common questions
What is the Saver's Match?
It's a federal matching contribution, created by the SECURE 2.0 Act, for eligible savers. The IRS says it will match up to 50% of retirement contributions, up to $1,000 per person per year, starting in 2027.
Who is eligible for the Saver's Match?
You must be at least 18 by the end of the tax year, not a full-time student as defined in the tax code, and not claimed as a dependent. Your modified adjusted gross income must also be below the cutoff for your filing status: $35,500 for single filers, $53,250 for heads of household, and $71,000 for joint filers in 2027, with the match phasing down as income rises.
Does the Saver's Match replace the Saver's Credit?
For contributions to retirement plans and IRAs, yes, starting with tax year 2027. The IRS says you generally cannot receive both for the same contribution. The Saver's Credit continues for ABLE account contributions.
Do I need to do anything in 2026?
No. The IRS says no action is needed in 2026. The match applies to contributions for 2027 and later, and you claim it on Form 8880-A with your 2027 return.