Saver’s Credit to be Replaced with Federal Saver’s Match

Jun 2, 2023 | 2026, Retirement Plan Law

The nonrefundable Saver’s Credit for some IRA and retirement plan contributions will be superseded by a Federal Saver’s Match contribution that is deposited into an IRA or retirement plan. The match is equal to 50% of the amount deferred by the participant, up to $2,000 per year. This means an extra $1,000 for every $2,000 contributed annually. The $2,000 may be reduced by certain distributions to the participant completed within the past 3 years. Ineligible participants include: tax filers under the age of 18, full time students, dependents, and nonresident aliens. The match is only available for participants whose Modified Adjusted Gross Income (MAGI) is as follows:


Filing Status 50% Match if MAGI is below: Phase-Out of 50% Match if MAGI is between: 0% Match if MAGI at or above:
Joint filers $41,000 $41,000 – $71,000 $71,000
Head of Household $30,750 $30,750 – $53,250 $53,250
Single/Separate filers $20,500 $20,500 – $35,500 $35,500


Applicable plans: 401(k), 403(b), governmental 457(b) plans, SIMPLE IRA, SARSEP and traditional IRAs.

Effective: 1/1/2026.


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