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Roth IRA owners may need a second retirement account to claim the new Saver's Match
The Saver's Match program, which starts in 2027, is for lower- and moderate-income retirement savers — but Roth IRA owners may face a hurdle to get the money.
TL;DR
- The Saver's Match program, starting with the 2027 tax year, offers a government match for retirement savers.
- Eligible individuals (single filers up to $35,500, joint filers up to $71,000) can receive a match of up to $1,000 for single or $2,000 for joint filers.
- A significant challenge is that the match, while earned through contributions to any retirement account, can only be deposited into a traditional IRA, not a Roth IRA.
- This creates a hurdle for individuals, particularly those enrolled in state-run auto-IRA programs which typically default to Roth IRAs.
- While a White House official expressed hope for future Roth IRA compatibility, current law requires it to go into pre-tax (traditional) accounts.
- This incompatibility could lead to administrative complexity and potentially higher fees for savers needing to maintain two separate IRA accounts.
- The Saver's Match replaces the saver's credit, which is available through the 2026 tax year.
- The program is part of broader efforts to address the estimated 53.7 million workers lacking access to employer-based retirement plans.