The IRS is notifying households that cash payments up to $2,000 are on the way under the new Saver's Match program. Will you qualify?

If you claimed the Saver’s Credit on your 2025 tax return, then you may have already received a letter in the mail from the IRS — called a CP321J notice — informing you that you’re eligible.

The Saver’s Match will replace the Saver’s Credit in the 2027 tax year and is available to taxpayers whose 2025 income meets eligibility requirements.

The new federal matching contribution — which was the result of 2022 SECURE 2.0 retirement legislation — is aimed at helping those taxpayers boost their retirement savings. So are you eligible?

How the Saver’s Match could help workers

Of the 147.3 million workers aged 18 to 64, about half (51.7%) have no retirement plan at work, according to research from the Economic Innovation Group, a bipartisan public policy organization. In the private sector, 49.1% lack access to an employer-provided plan. But even in the public sector, 30.2% of government workers don’t have access.

Of workers, just 37% receive an employer contribution or match, with a median match of $3,000 per year.

The Saver’s Match is aimed at helping lower — and moderate — income workers boost their retirement savings. Even if you don’t have a workplace savings plan, you can still benefit from the match through an individual retirement account (IRA).

And small contributions can add up over time.

“If you contribute $20 a month to a retirement account in 2027 ($240 total) and qualify for the full 50% match, the federal government adds $120 to your retirement account,” according to the IRS, in an example of how the Saver’s Match works. If you contribute the same amount each year, assuming an annual growth rate of 6%, that would translate to $28,500 in 30 years.

You can see how your savings could add up with Investor.gov’s compound interest calculator.

How the Saver’s Match works

Whether you qualify — and how much you qualify for — will depend on your modified adjusted gross income (MAGI), as well as your filing status (for example, if you’re single or married filing jointly).

Single filers with a MAGI up to $20,500 or joint filers with a MAGI up to $41,000 can qualify for a government match that equals 50% of contributions, up to a maximum of $1,000 per person annually.

If you’re a single filer with a MAGI between $20,501 and $35,499, or a joint filer with a MAGI between $41,001 and $70,999, then you’d qualify for reduced matching contributions.

But since the Saver’s Match doesn’t kick in until you file your 2027 federal tax return in 2028, the Saver’s Credit remains in effect when you file your taxes in 2027 for the 2026 tax year.

In 2028, you’d claim the Saver’s Match with Form 8880-A.

So what do you need to do ahead of time? In 2026 — nothing. In 2027, contribute to an eligible retirement plan, which include 401(k), 403(b) and governmental 457(b) plans, as well as traditional and Roth IRAs. No minimum contribution is required.

You must be at least 18, not a full-time student and not claimed as a dependent on someone else’s tax return.

Worth noting, the Saver’s Match is a nonrefundable tax credit, which means it can help reduce your tax bill, but only to $0 — you’re not going to get a refund.

A few kinks to work out

While Roth IRA contributions qualify for the Saver’s Match, at this point matches can’t actually be deposited into a Roth IRA — which is a bit of a problem, especially for workers enrolled in an auto-IRA (a state-run Roth IRA program).

Why? Contributions to Roth IRAs are made with after-tax dollars. The Saver’s Match, on the other hand, is tax-deferred until retirement, meaning it’s not compatible with how Roth IRAs are structured.

There are a few proposed workarounds: for example, the IRS and Treasury Department are considering a “conduit” IRA, in which the match would be deposited into a traditional IRA and then transferred to a Roth IRA.

But there’s no fix yet.

Another hitch? Plan sponsors and IRA providers aren’t required to accept Saver’s Match contributions. Doing so will likely be an administrative headache, requiring plan amendments (such as being able to process contributions from outside of payroll).