Understanding the 2027 Saver’s Match

The retirement savings landscape is about to change for millions of lower- and moderate-income workers.

In IRS Notice 2026-48, the Treasury Department and IRS outlined their plans for implementing the Saver’s Match, a provision created by the SECURE 2.0 Act that will replace the existing Saver’s Credit for qualifying retirement plan and IRA contributions beginning with the 2027 tax year. The first Saver’s Match payments are expected to be made in 2028, based on eligible contributions made during 2027.

For financial advisors, this is more than a tax-law change. It creates another opportunity to help clients understand the value of retirement contributions, identify potentially eligible workers and coordinate retirement planning with tax considerations.

Saver’s Match vs. Saver’s Credit

The current Saver’s Credit is a nonrefundable tax credit.  Generally, an eligible taxpayer can receive a credit based on qualifying retirement contributions, but the credit cannot exceed the taxpayer’s federal income-tax liability.  The Saver’s Match works differently.  

That distinction is important.  The new system changes the incentive from essentially a tax benefit claimed on a tax return to a contribution that can become part of the individual’s retirement savings.

The Saver’s Match is not an employer matching contribution.  It is a federal contribution funded through the Treasury.  That distinction matters for plan sponsors and advisors.

How the Match Works

The IRS is considering several mechanisms for delivering Saver’s Match contributions to employer-sponsored retirement plans, including approaches involving plan or recordkeeper registration and participant-level information.  

The final implementation process is therefore still developing. Plan sponsors, recordkeepers, TPAs and advisors should pay attention to additional Treasury and IRS guidance as the 2027 implementation date approaches.

Beginning with the 2027 tax year, an eligible individual may receive a federal matching contribution of up to 50% of the first $2,000 of qualifying retirement contributions—up to $1,000 per year.  

The federal government, rather than the employer, provides the match.  The contribution is generally deposited into an eligible retirement savings vehicle, even when the individual has no federal income-tax liability.

Eligibility and Income Limits

Who is eligible and how is it calculated?

For 2027, an eligible individual generally must:

• Be at least age 18 by the end of the tax year.
• Make qualifying retirement savings contributions.
• Not be claimed as someone else’s dependent.
• Not be a qualifying full-time student.
• Meet the applicable income requirements.

For 2027, the maximum modified adjusted gross income (MAGI) for receiving any Saver’s Match is:

Filing Status	Maximum 2027 MAGI
Single	$35,500
Married Filing Jointly	$71,000
Surviving Spouse	$71,000
Head of Household	$53,250
Married Filing Separately	$35,500

These maximum income thresholds are scheduled to be adjusted for inflation in future years.  Importantly, eligibility does not necessarily mean the individual will receive the full 50% match.  The Saver’s Match begins at 50% of qualifying contributions but phases down as MAGI increases.

For 2027, the full 50% rate applies up to these MAGI levels:

Filing Status	Beginning of Phaseout	Maximum MAGI	Phaseout Range
Single	$20,500	$35,500	$15,000
Married Filing Jointly	$41,000	$71,000	$30,000
Surviving Spouse	$41,000	$71,000	$30,000
Head of Household	$30,750	$53,250	$22,500
Married Filing Separately	$20,500	$35,500	$15,000

The maximum qualifying contribution remains $2,000 per individual, meaning the maximum Saver’s Match is $1,000.

For example, an individual who contributes $2,000 and qualifies for the full 50% rate could receive a $1,000 Saver’s Match.

However, an individual with higher MAGI within the phaseout range could receive a substantially smaller percentage.

The IRS provided an example of a single taxpayer with $30,000 of MAGI who contributes $1,500.  Under the formula in Notice 2026-48, that taxpayer would receive a 19% match, or $285.  It is calculated as follows:

((30,000-20,500)/$15,000) = 31%

50%-31% = 19%

$1,500 *19% = $285 Savers match

The notice provides for a broad range of qualifying contributions.

They generally include:

• Traditional and Roth IRA contributions;
• Elective deferrals to 401(k) plans;
• 403(b) contributions;
• Governmental 457(b) plans;
• SIMPLE IRA and certain SEP contributions;
• Certain voluntary after-tax employee contributions; and
• Certain contributions to 501(c)(18) plans.

Rollover contributions and trustee-to-trustee transfers generally do not qualify as new retirement savings contributions for purposes of calculating the Saver’s Match.  This distinction will be important when advisors review a client’s retirement activity.  A rollover may move money into a retirement account, but it does not necessarily create additional savings eligible for the federal match.

Advisor Opportunities

For advisors working with employers, the new program also creates an opportunity for participant education.  Employees who previously overlooked the Saver’s Credit may need to understand that the new Saver’s Match could provide a direct contribution to their retirement savings.

The Saver’s Credit does not disappear immediately.

For the 2026 tax year, the existing Saver’s Credit remains in place. For 2026, the income limits are $80,500 for married couples filing jointly, $60,375 for heads of household and $40,250 for single taxpayers and married individuals filing separately.

The transition occurs for taxable years beginning after December 31, 2026. There is also an important exception: the existing Saver’s Credit remains available after 2026 for qualifying contributions to ABLE accounts.

Although the Saver’s Match does not begin until 2027, advisors can begin preparing now.

1. Identify potentially eligible clients

Review households with income levels that may fall within the Saver’s Match ranges.  These clients may benefit from incorporating retirement contributions into their broader tax and retirement planning strategy.

2. Review contribution behavior

A client who contributes little or nothing to a retirement plan may need a different conversation once the federal match becomes available.

3. Coordinate with tax professionals

The Saver’s Match uses a specific definition of MAGI that includes certain amounts that may not be included in a taxpayer’s ordinary AGI calculation.  Advisors should coordinate with tax professionals when determining eligibility and potential benefits.

4. Prepare plan sponsors for participant education

Employers will likely need clear participant communications explaining the difference between:

• the employer’s plan match;
• the federal Saver’s Match; and
• the former Saver’s Credit.

5. Monitor implementation guidance

Notice 2026-48 is a notice of intent to issue proposed regulations—not the final regulatory framework.  Treasury and the IRS specifically requested comments regarding how the program should be administered and how contributions should be claimed and delivered.  Comments are due October 5, 2026.  Individuals should consult their tax and financial professionals regarding their specific circumstances.

Distribution Rules

The Saver’s Match is not a separate cash benefit you can withdraw on demand; it is a retirement contribution that grows in your account and is subject to the distribution rules as stated in the plan document.  

Early withdrawals (before age 59½) from retirement accounts are generally subject to 10% early withdrawal penalty plus ordinary income tax, unless an exception applies.

The Saver’s Match is part of the retirement account balance; it does not have a separate “withdrawal” process so it can only take it out under the same rules that apply to the account it was deposited into.  

If the withdraw of the contributions that generated the match during the “testing period” (the year of contribution and certain prior years), the IRS can recover 100% of  the match under §6433(f).  The match is intended for long-term savings, not short-term access.

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Looking Ahead to 2027

The Saver’s Match creates a new opportunity for eligible workers to strengthen their retirement savings.  Advisors can begin preparing by identifying potentially eligible clients, discussing the changes with plan sponsors and coordinating with tax professionals.

As the start date approaches, staying informed about additional Treasury and IRS guidance will also be important.  RMS can help advisors navigate retirement plan changes and support the employers and participants they serve.  If you have questions about the Saver’s Match or how RMS can assist your clients, contact Leisha or your Account Executive.