The Internal Revenue Service and the Treasury Department are seeking comments by Nov. 4 on Saver's Match contributions to be paid by Treasury under the Secure 2.0 Act of 2022.
Beginning in 2027, by making annual contributions of up to $2,000 to a 401(k)-type plan or an individual retirement account, an individual can receive as much as an annual $1,000 Saver's Match contribution from the Treasury, the agencies said Thursday.
Notice 2024-65 requests comments on all aspects of Saver's Match contributions and seeks feedback on specific questions.
"Saver's Match contributions represent a new approach to promoting retirement savings and an important opportunity to improve the long-term financial security for millions of low- to moderate-income Americans," the IRS and Treasury said.
Unlike the existing Saver's Credit, "a nonrefundable tax credit that will be replaced by Saver's Match contributions, the Saver's Match contribution is paid by Treasury to a 401(k)-type plan or non-Roth IRA designated by an individual claiming the Saver's Match contribution," the IRS and Treasury state.
The amount of an individual's Saver's Match contribution depends on the individual's income or joint income level.
