IRS Seeks Feedback on Saver's Match Under Secure 2.0

For instance, “for a married individual filing jointly, the Saver’s Match contribution phases out completely at a joint income of $71,000, and, for a single filer, the Saver’s Match contribution phases out completely at an income of $35,500,” the IRS and Treasury state.

Section 104 of Secure 2.0 directs the Treasury to increase public awareness of the Saver’s Match to increase its use by low- and moderate-income taxpayers.

“The promotion will make clear that the Saver’s Match cannot be withdrawn without incurring penalties, including repayment to the Treasury Department in some cases where the Saver’s Match is withdrawn from an individual retirement account before retirement,” Secure 2.0 Act states. “Taxpayers will have an election to designate a retirement account to receive the repaid Saver’s Match.”

The Treasury secretary must report to Congress on the Treasury Department’s anticipated promotion efforts no later than July 1, 2026.

The IRS and Treasury said Thursday that to “enhance the implementation of this new tax benefit, it is important to receive the perspective of all interested parties” on the following topics:

Eligibility for Saver’s Match contributions
How Saver’s Match contributions would be claimed
How the account receiving Saver’s Match contributions would be designated
The process for completing Saver’s Match contributions
Saver’s Match recovery taxes on specified early distributions
Reporting and disclosure for Saver’s Match contributions.