The Treasury Department and IRS are seeking public feedback on a SECURE 2.0 provision that establishes a federal saver’s match program.
Starting in 2027, the program will allow qualified Americans participating in an employer-sponsored retirement plan or contributing to an individual retirement account to receive a 50% federal matching contribution up to a maximum of $1,000 if filing individually. The matching contributions will be deposited directly into the taxpayer’s retirement plan account or IRA.
The program — a key piece of SECURE 2.0, a comprehensive retirement security packaged Congress passed in 2022 — was designed to help lower-income savers or those with an adjusted gross income of $71,000 or below if married and filing jointly, $53,250 or below if filing as head of household, or $35,000 or below if single or married but filing separately.
In a notice posted Sept. 5, the federal regulators request public input on a host of saver’s match program topics, like eligibility, how such contributions would be claimed, the process for completing saver’s match contributions, and reporting and disclosing for the contributions.
Comments are due by Nov. 4.
“To enhance the implementation of this new tax benefit, it is important to receive the perspective of all interested parties,” the regulators said in a news release. “Comments are requested from all stakeholders, including low- to moderate-income taxpayers, volunteer and for-profit tax preparers, organizations that serve and advise low- to moderate-income taxpayers, IRA custodians and trustees, and retirement plan administrators, record keepers and plan sponsors.”
Studies on the saver’s match program project it will help to close the racial wealth gap in 401(k) plans and spur more Americans to start saving for retirement.
