A program that will soon be available to increase the retirement savings of low- to middle-income earners will begin in 2027. The federal government program passed in December 2022 in the Secure Act 2.0 and will add 50 percent of the contributions made to some retirement plans.
The new program is called the Saver’s Match. Once it starts, it will replace the existing program called the Saver’s Credit. The old program gave people a tax credit, which means the credit amount was subtracted from what they owed in taxes. The Internal Revenue Service says the Saver’s Credit is given to lower-income people with individual retirement accounts (IRAs) (Roth or traditional), 401(k)s, 403(b)s, 457 plans (government), and Thrift Savings plans. You can also have a SIMPLE IRA. Rolled-over money cannot be counted as a contribution.
