Supporting Millions of Americans as They Save for Retirement
The Saver’s Match is a federal matching contribution for low- to moderate-income workers who contribute to a retirement savings account. This program could add thousands of dollars into millions of retirement accounts for savers.
How will the Saver’s Match work?
The Saver’s Match is a federal matching contribution that will be deposited into a taxpayer’s retirement account. Starting in 2027, the Saver’s Match will replace the federal Saver’s Credit for low- and moderate-income workers. A key difference from the credit is that the Match will be fully refundable, meaning it will be paid even if a worker does not have any tax liability.
For eligible individual savers with incomes below certain thresholds, the federal government will match 50 percent of contributions to a qualified retirement plan, up to a maximum of $1,000 a year. Savers will claim the Match by filing a tax return, and the Treasury Department will deposit the funds directly into their retirement account. Single filers with a modified adjusted gross income (MAGI) below $35,500, joint filers with a MAGI below $71,000, and head-of-household filers with a MAGI below $53,250 will qualify for at least a partial Match. These thresholds will be adjusted for inflation starting in 2028.
What is the potential impact of the Saver’s Match?
Up to 69 million workers are eligible for the Saver’s Match, according to the Employee Benefits Research Institute. Every year, these savers could receive up to $1,000 per person into a qualifying retirement account (up to $2,000 per married couple filing jointly).
Over 25 years, the Saver’s Match could increase the retirement savings balance of an eligible saver by as much as 50 percent.
How the Saver’s Match Could Increase Retirement Savings Balance for Eligible Savers
Source: Analysis from Andrew Blevins at Pew Charitable Trusts
How can we make sure everyone who is eligible for the Saver’s Match can benefit from it?
Up to 69 million Americans are eligible by income to receive the Saver’s Match, but the majority don’t yet have retirement accounts that can receive a contribution. Additionally, few eligible savers currently put aside enough to earn the full Match. With two years until launch, it’s crucial that we communicate the benefits, eligibility rules, and logistics of the Match, both to eligible workers and their employers.
What can leaders do to support its implementation?
Implementing the Saver’s Match is not straightforward, and neither is ensuring that eligible people are prepared to claim this opportunity to have new money invested into retirement accounts. While experts in government and industry are focused on solving the complex operational challenges, successful implementation will require significant effort and problem solving from leaders across all sectors—including financial services providers, nonprofits, advocacy groups, government leaders, tax preparers, and more. We need leaders from across sectors to:
Partner
Form creative pathways and partnerships to ensure that eligible people have easy access to high-quality accounts in which to save and receive the Saver’s Match.
Support
Support the Saver’s Match policy and ensure that it continues to be a priority for policymakers until it goes into effect in 2027, with a special focus on expanding the policy to include more savers and make Roth IRAs—the most common account structure for state-facilitated workplace retirement savings plans—eligible to receive the Saver’s Match.
