Publication
The Government Is Matching Retirement Contributions—Here’s How It Works
By: Anne Meyer
During the 2026 State of the Union address, President Trump highlighted a new federal program that will provide a government match on retirement savings for millions of Americans. The program is known as the Saver’s Match, and it was enacted as part of the SECURE 2.0 Act of 2022. It applies to tax years beginning on or after January 1, 2027.
What Is the Saver’s Match?
Currently, lower and moderate income workers who contribute to a retirement plan may claim the Saver’s Credit, a nonrefundable tax credit that only reduces tax owed. Beginning in 2027, the Saver’s Match replaces the Saver’s Credit with a direct federal matching contribution deposited into the individual’s retirement account (such as a 401(k), 403(b), governmental 457(b), or IRA). The government will match 50% of contributions up to $2,000 per year, meaning a qualifying worker could receive up to $1,000 directly in their retirement account.
Who Is Eligible?
Eligibility is based on modified adjusted gross income (MAGI) and filing status. The approximate phase-out ranges (subject to inflation adjustments) are:
| Filing Status | Phase-Out Range |
| Single | $20,500 – $35,500 |
| Head of Household | $30,750 – $53,250 |
| Married Filing Jointly | $41,000 – $71,000 |
Unlike the current Saver’s Credit, which phases out in abrupt steps, the Saver’s Match phases out gradually, reducing the “cliff” effect under current law.
What Should Employers and Plan Sponsors Do?
Retirement plan recordkeepers will need to coordinate with the IRS to receive and allocate matching deposits into participant accounts, and employers should begin planning participant education efforts. The IRS has issued Notice 2024-65 requesting public comments on implementation, and additional guidance from the Treasury Department and the IRS is expected before the program takes effect.
About Snell & Wilmer
Founded in 1938, Snell & Wilmer is a full-service business law firm with more than 500 attorneys practicing in 17 locations throughout the United States and in Mexico, including Phoenix and Tucson, Arizona; Los Angeles, Orange County, Palo Alto and San Diego, California; Denver, Colorado; Washington, D.C.; Boise, Idaho; Las Vegas and Reno-Tahoe, Nevada; Albuquerque, New Mexico; Portland, Oregon; Dallas, Texas; Salt Lake City, Utah; Seattle, Washington; and Los Cabos, Mexico. The firm represents clients ranging from large, publicly traded corporations to small businesses, individuals and entrepreneurs. For more information, visit swlaw.com.
