Millions of Americans Could Qualify for a New $1,000 Retirement Benefit Coming in 2027

For lower- and middle-class Americans, saving for retirement can take a backseat to necessary expenses. An upcoming federal change could make even small contributions go much further.

The program, starting in 2027, provides a matching benefit — but you must meet certain income and retirement plan guidelines to qualify. Learn more about this potential boost to your nest egg coming next year.

How the Saver's Match retirement program works

This federal program was created through the SECURE 2.0 Act, and it gives qualifying savers a federal match of up to 50% on their first $2,000 in eligible retirement contributions. It's capped at $1,000 in matching funds each year.

The match starts in 2027, so the benefit can be claimed when taxpayers file their 2027 federal tax returns in 2028. The IRS estimates that millions of low- and moderate-income Americans will have the opportunity to participate, but the exact number who qualify and follow through is yet to be determined.

Who qualifies for the Saver's Match in 2027?

In addition to the income limits below, applicants must be considered U.S. residents for tax purposes, make qualifying retirement contributions, and be at least 18 by the end of the tax year. Those considered full-time students for at least five months of the calendar year and those claimed as dependents on someone else's tax return don't qualify.

This isn't a benefit just for seniors, either. The IRS lists the minimum age, but there's no maximum age limit, and other retirement contribution rules still apply.

Saver's Match income limits for 2027

The program has a phase-out limit for getting the 50% (full match) and a hard cap, as well. The IRS will use the Modified Adjusted Gross Income (MAGI), which adds back certain amounts, including pretax retirement contributions, to adjusted gross income.

The thresholds for 2027 are:

• Married filing jointly or qualifying surviving spouse: $41,000 or less for full 50% match, partial phased-out match at $41,001 to $70,999, and no match at $71,000 or above.
• Head of household: $30,750 or less for full 50% match, partial phased-out match at $30,751 to $53,249, and no match at $53,250 or above.
• Single or married filing separately: $20,500 or less for full 50% match, partial phased-out match at $20,501 to $35,499, and no match at $35,500 or above.

Limits are expected to be adjusted for inflation each year after 2027.

Which retirement accounts qualify for the Saver's Match?

The IRS spells out the qualifying retirement savings vehicles, such as traditional and Roth IRAs, 401(k)s, 403(b)s, and government 457(b) plans. These accounts can receive contributions that count toward the credit, but they may not be a qualifying account to receive the federal match.

Roth contributions count toward eligibility, but the federal match must be deposited into an eligible non-Roth retirement account that accepts Saver's Match contributions. (The IRS is considering an option where it could count through an intermediary traditional IRA, but this isn't final).

Always check whether your plan or IRA provider will accept the Saver's Match rather than assuming.

How do you receive the Saver's Match?

This federal match generally goes into a designated retirement account, not your checking account for everyday expenses. However, if your match is greater than zero but less than $100, you may elect to receive it as a refundable income tax credit instead.

To get the match, you must submit Form 8880-A with your 2027 federal tax return in 2028, and the IRS will determine how much you get (if any) based on your contributions and income. Any withdrawals of the match or other retirement contributions before age 59.5 may trigger additional taxes and restrictions.

Saver's Match vs. Saver's Credit: What's the difference? 

This new program isn't to be confused with the existing Saver's Credit, which reduces income tax liability depending on how much you've put into a retirement account. It's not refundable, but it can help you with your tax bill.

Like the Saver's Match, the Saver's Credit is income-based — but it doesn't give you additional money in a retirement account. Both programs are designed to reward lower- to middle-class taxpayers for good investing habits, with the Saver's Match replacing the Saver's Credit for eligible retirement contributions starting in 2027. The Saver's Credit will remain available for eligible ABLE account contributions.

Bottom line

Eligible savers can receive up to $1,000 per person in addition to what they put away for retirement, starting in 2027. This is generally retirement account funding rather than a check, however, so you'll see any qualified reward show up in your 401(k), IRA, or other retirement account balance.

The IRS website highlights how modest contributions of $240 per year can grow at market rates with this match. Those getting the full 50% match could have up to $4,700 in their retirement account after just 10 years, assuming a 6% annual return. It's not enough to fully fund the budget, but it may be motivating enough to start investing now.

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Author Details

Josh Koebert

Josh Koebert has spent more than 16 years digging into the data behind how Americans earn, save, and retire. As a Senior Data Journalist at FinanceBuzz, his work covers both ends of that challenge: the job market and real estate pressures that shape how much people can save, and the Social Security policies, 401(k) strategies, and retirement income gaps that determine what they'll actually have when they get there.