IRS begins notifying taxpayers about a retirement savings match

The Internal Revenue Service has begun mailing notices to taxpayers who claimed the Saver’s Credit on their 2025 tax returns or whose income may place them within the eligibility range. The Saver’s Match, created under the SECURE 2.0 Act, will replace the existing credit for contributions made during the 2027 tax year. Under the program, qualifying workers who contribute to a 401(k), IRA or eligible retirement account could receive a government match equal to 50% of the first $2,000 they save. That would provide as much as $1,000 for an individual taxpayer or up to $2,000 for a married couple filing jointly if both spouses qualify and contribute. Eligibility will depend on modified adjusted gross income and filing status. For 2027, single filers with income of $20,500 or less could qualify for the full match, while the benefit would gradually decrease at higher income levels and disappear above $35,500. The notices do not require immediate action. They alert taxpayers that they may need to continue contributing to a workplace plan or open an IRA before claiming the benefit on a 2027 return filed in 2028. The match will not be taxed when deposited, although withdrawals may be taxable under normal retirement-account rules. For more information click here.