Retirement Plan Recordkeepers Working With the Treasury to Implement New Saver’s Match

Reports show that retirement plan recordkeepers have already begun working with the Treasury Department to determine the best way to implement the changes to the saver's credit.  Under the SECURE Act 2.0, the existing saver’s credit will be replaced by a 50 percent matching contribution from the federal government (the match will be deposited into existing 401(k)s and IRAs).  That matching contribution will be limited to $2,000 and will also be subject to phase out based on income levels.  This provision becomes effective in 2027.  Various options are being explored, including the use of blockchain technologies and the automated clearinghouse (ACH) system.  The challenge will be determining how to transfer money from the Treasury into the individual's retirement account.  Interested parties are also encouraging a tracking number system, where eligible participants would provide a tracking number to ensure the government funds end up in the correct account.  Currently, only 11% of employers say they will plan to add the new saver's match feature to their retirement accounts.  For more information on the saver's tax credit, visit Tax Facts Online. Read More: Link to Q3648.