Quick Note: The New Saver's Match Can Put Up to $1,000 in Your Retirement Account

Nov 6

Quick note: some of you are getting a letter from the IRS (Notice CP321J) saying you may be eligible for a federal match on your retirement contributions. Don't toss it.

Starting in 2027, the Saver's Match replaces the old Saver's Credit. If you qualify, the federal government matches 50% of what you put into a retirement account, on up to $2,000 a year. That's up to $1,000 a year, deposited straight into your retirement account.

How you qualify

You need to:

Be at least 18 by the end of the year
Not be claimed as a dependent on someone else's return
Not be a full-time student
Be a U.S. resident for tax purposes
Put money into a retirement plan or IRA for 2027
Have income under the limit for your filing status

For 2027, the match phases out completely at these income levels:

Single or married filing separately: $35,500
Head of household: $53,250
Married filing jointly: $71,000

The closer you are to the limit, the smaller the match.

How you get the match

1. Contribute to a retirement account in 2027. That can be an IRA (traditional or Roth), a 401(k), or a 403(b). If you don't have one, the government is launching TrumpIRA.gov to help you find a low-cost IRA that accepts the match.
2. File your 2027 tax return. You'll claim the match on a new form, Form 8880-A, and tell the IRS which account to deposit it into.
3. The IRS deposits the match into your retirement account. The IRS is still working out exactly how and when.

When you'll know if you're eligible

The letter is a heads-up based on your 2025 return. It doesn't guarantee anything. You'll know for sure when your 2027 return is filed in early 2028, because the match is based on your 2027 income and contributions.