IRS Seeks Comments on New Saver’s Match

Starting in 2027, the existing saver’s credit will be replaced by a 50 percent matching contribution from the federal government (the match will be deposited into existing 401(k)s and IRAs).  That matching contribution will be a 50% matching contribution (up to a maximum of $1,000 if the taxpayer contributed at least $2,000) and will be subject to phase out based on income levels. The IRS has requested comments on how the saver's match would be claimed and how accounts receiving the saver's match would be designated.  They have also requested comments on the process for actually completing the saver's match and reporting and disclosure for purposes of saver's match contributions.  Finally, the IRS has requested comments on how the IRS and Treasury can ensure taxpayers know about the new program so that they're able to participate.  For more information on the saver's credit, visit Tax Facts Online. Read More: Link to Q3648.