The Internal Revenue Service issued Notice 2026-48 announcing its intent to propose regulations for the federal Saver’s Match program, which launches in January 2027, on Aug. 7.
The Saver’s Match is a refundable tax credit that, for the first time, will be deposited directly into an eligible taxpayer’s retirement account rather than paid as a cash refund, the IRS said. The structural innovation is designed to build retirement savings among lower- and moderate-income workers.
Eligibility is targeted at workers below certain income thresholds who contribute to an IRA or employer-sponsored retirement plan. The program was authorized by the SECURE 2.0 Act.
The notice provides interim guidance for financial institutions and plan administrators that need to prepare their systems for the 2027 implementation. Retirement plan recordkeepers, custodians and payroll companies will need to build infrastructure to receive and allocate the government matching contributions.
The Saver’s Match replaces the existing Saver’s Credit, which was a nonrefundable tax credit that provided less benefit to lower-income taxpayers who owed little or no federal income tax. By depositing the match directly into retirement accounts, the new program ensures the benefit goes toward long-term savings.
Approximately half of American workers have no retirement savings outside of Social Security, according to federal survey data. The Saver’s Match is intended to incentivize savings among the workers least likely to have employer-sponsored retirement benefits.
The IRS said it will issue proposed regulations in advance of the January 2027 launch to give the financial services industry adequate time to implement the program.