IRS Asks For Feedback on the SECURE 2.0 Act’s Saver’s Match

The IRS and the Treasury Department issued a notice on Sept. 5 asking for public comments on Saver’s Match contributions to be paid by Treasury under the SECURE 2.0 Act of 2022.

Notice 2024-65 requests comments on all aspects of Saver’s Match contributions and asks several questions on a variety of Saver’s Match topics.

The comment deadline is Nov. 4, 2024.

Beginning in 2027, by making annual contributions of up to $2,000 to a 401(k)-type plan or an individual retirement account (IRA), an individual can receive as much as an annual $1,000 Saver’s Match contribution from the Treasury, the IRS said on Thursday.

“Saver’s Match contributions represent a new approach to promoting retirement savings and an important opportunity to improve the long-term financial security for millions of low- to moderate-income Americans,” the agency said in a media release. 

Unlike the existing Saver’s Credit, a nonrefundable tax credit that will be replaced by Saver’s Match contributions, the Saver’s Match contribution is paid by Treasury to a 401(k)-type plan or non-Roth IRA designated by an individual claiming the Saver’s Match contribution. The amount of an individual’s Saver’s Match contribution depends on the person’s income or joint income level, according to the IRS.

For example, 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.

Notice 2024-65 requests specific comments 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; and
• Miscellaneous issues, including how Treasury and the IRS could ensure that individuals in underserved communities know how to participate and receive the full benefits of Saver’s Match contributions.

“Treasury and the IRS are seeking input necessary for the program to reach its full potential to improve the retirement readiness of low- to moderate-income individuals,” the IRS said. “To enhance the implementation of this new tax benefit, it is important to receive the perspective of all interested parties. Comments are requested from all stakeholders, including low- to moderate-income taxpayers, volunteer and for-profit tax preparers, organizations that serve and advise low- to moderate-income taxpayers, IRA custodians and trustees, and retirement plan administrators, recordkeepers, and plan sponsors.”

Comments can be submitted either at www.regulations.gov or by mail to Internal Revenue Service, CC:PA:01:PR (Notice 2024-65), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.