IRS Plans Changes to Boost Retirement Savings With $1,000 Saver’s Match Program

The Internal Revenue Service (IRS) and the Treasury are preparing to launch a new program aimed at boosting the retirement savings of low and moderate-income Americans by offering taxpayer-funded matching contributions of up to $1,000 annually, deposited directly into their retirement accounts.

The Saver’s Match, introduced as part of the SECURE 2.0 Act, will replace the current Saver’s Credit. Unlike the nonrefundable Saver’s Credit, which only reduces taxes owed, the Saver’s Match offers up to $1,000 in direct contributions to a taxpayer’s retirement account.

The IRS expects this shift to provide greater benefits, particularly for those with little to no tax liability, by enhancing their retirement savings rather than just lowering their taxes.

The agencies are seeking public input on how best to implement the Saver’s Match program, set to launch in 2027. They are particularly focused on simplifying the process for claiming the matching contribution and ensuring that retirement plans and individual retirement accounts (IRAs) can easily accept the contributions, according to a Sept. 5 IRS press release.


Read Full Article Here