The Treasury Department and Internal Revenue Service have issued Notice 2026-48, outlining the operational and administrative framework for the federal Saver’s Match program established under Section 103 of the SECURE 2.0 Act of 2022.
Key Elements of Notice 2026-48
Beginning in tax year 2027, the Saver’s Match replaces the former nonrefundable Saver’s Credit with a direct federal matching contribution deposited directly into an eligible worker’s retirement account (such as a 401(k), 403(b), 457(b), or IRA).
- 50% Federal Match: Eligible workers can receive a 50% matching contribution on up to $2,000 in annual retirement contributions, yielding a maximum federal contribution of $1,000 per year.
- Phase-Out Thresholds (2027 Tax Year): For single filers, the match phases out between Modified Adjusted Gross Income (MAGI) of $20,500 and $35,000. For married couples filing jointly, the match phases out between $41,000 and $71,000.
- New Form 8880-A: Taxpayers will claim the federal match on their annual tax return using a new tax form, Form 8880-A. The Treasury Department will then remit matching funds directly to the designated retirement plan administrator.
- Public Comment Window: The IRS is requesting feedback from small business plan sponsors, recordkeepers, and financial institutions on proposed deposit mechanisms through October 5, 2026.
What Employers and Plan Sponsors Need to Know
While the first matching contributions will be claimed on 2027 tax returns filed in 2028, retirement plan recordkeepers and small business employers must prepare technical systems during 2026. Employers sponsoring 401(k) or SIMPLE IRA plans must ensure their plan documents allow acceptance of government matching contributions.
Notice 2026-48 also advances directives under Executive Order 14403 to expand public awareness of low-cost retirement savings vehicles, including digital enrollment frameworks through TrumpIRA.gov.
Action Items for Businesses and Taxpayers
- Review Plan Acceptance Terms: Small business employers should confirm with their retirement plan administrator that payroll systems will support Saver’s Match reporting for 2027.
- Evaluate Low-Income Saver Eligibility: Identify employees who qualify for the 50% match to promote retirement plan participation.
- Submit Comments by October 5, 2026: Industry stakeholders can submit technical feedback on Notice 2026-48 to the IRS ahead of formal rulemaking.
Educational information only, not licensed legal, tax, or financial advice. We refer to and partner with licensed professionals when personalized advice is needed. Laws change; no warranty of accuracy or timeliness.
Sources and Official References
- Primary Source: IRS News Release IR-2026-89 & Notice 2026-48 (August 7, 2026), IRS Notice 2026-48 Release
- Statutory Authority: SECURE 2.0 Act of 2022, Section 103 (26 U.S.C. § 6433)
- Tier 2 Corroboration: KPMG TaxNewsFlash, KPMG Technical Summary on Notice 2026-48
- Secondary Analysis: Thomson Reuters Checkpoint & Current Federal Tax Developments