IRS Letters about 2027 Saver’s Match

Recently, the IRS began sending informational letters to certain taxpayers regarding the new Saver’s Match that will replace the Saver’s Credit beginning in the 2027 tax year. The letter requires no action, but it can create questions for those clients who may receive it.

Beginning in 2027, the credit for qualified retirement savings contributions that is currently reported on Form 8880 will be replaced with a new matching contribution from the federal government that will be added to the IRA or employer-sponsored retirement plan account for eligible taxpayers who make eligible retirement contributions. The match can be as much as 50% of eligible contributions made by the taxpayer but is limited to $1,000 per year.

Generally, income must be below $71,000 for married couples and $35,500 for single taxpayers to receive any matching contribution.

In our seminars this December and January, we will discuss this provision along with the many new federal provisions for 2026 from OBBBA and from newly issued regulations and guidance.

Are you registered for one of our upcoming seminars in December and January? If you are not already registered, register here so you’ll be fully prepared with what you need to know.