Saver’s Match (and Saver’s Credit)

What the Saver’s Match is

Today, eligible workers can claim the Saver’s Credit, a nonrefundable tax credit of 10% to 50% of up to $2,000 they contribute to a 401(k) or IRA. For 2026 it is available with adjusted gross income up to $40,250 for single filers and $80,500 for joint filers. The SECURE 2.0 Act replaces it with the Saver’s Match: the government contributes 50% of up to $2,000 saved, and the money goes into the saver’s retirement account. The match phases out between $20,500 and $35,500 of income for single filers and $41,000 and $71,000 for joint filers, with those figures indexed after 2027.

Why it matters to employers

The match is claimed on the employee’s tax return, not through payroll. Plans are not required to accept Saver’s Match deposits, so expect a decision about whether yours will. Treasury and the IRS have said they will propose regulations, and a plan must be amended before it can accept these deposits (IRS Notice 2026-48). Proposed regulations had not been published as of November 2026. Until then, the Saver’s Credit is worth mentioning in enrollment materials, because many eligible employees do not know about it.

Example

For 2027, a single filer earning $20,000 who contributes $2,000 to her 401(k) would qualify for a $1,000 Saver’s Match from the government, on top of any employer match.

Common mistakes

• Confusing it with the employer match. The money comes from the federal government.

• Assuming it arrives automatically. The saver has to claim it on a tax return.

• Assuming every plan will accept the deposits.