IRS Seeks Feedback on Saver's Match Under Secure 2.0

The agency and the Treasury Department want comments on all aspects of the retirement account contributions.

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.

For instance, “for a married individual filing jointly, the Saver’s Match contribution phases out completely at a joint income of $71,000, and, for a single filer, the Saver’s Match contribution phases out completely at an income of $35,500,” the IRS and Treasury state.

Section 104 of Secure 2.0 directs the Treasury to increase public awareness of the Saver’s Match to increase its use by low- and moderate-income taxpayers.

“The promotion will make clear that the Saver’s Match cannot be withdrawn without incurring penalties, including repayment to the Treasury Department in some cases where the Saver’s Match is withdrawn from an individual retirement account before retirement,” Secure 2.0 Act states. “Taxpayers will have an election to designate a retirement account to receive the repaid Saver’s Match.”

The Treasury secretary must report to Congress on the Treasury Department’s anticipated promotion efforts no later than July 1, 2026.

The IRS and Treasury said Thursday that to “enhance the implementation of this new tax benefit, it is important to receive the perspective of all interested parties” on the following topics:

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