Roth IRA owners may need a second retirement account to claim the new Saver’s Match The federal Saver’s Match, launching in 2027, aims to help lower- and moderate-income workers save more for retirement with a matching contribution up to $1,000 or $2,000. However, those saving in Roth IRAs, common in state-run programs, may need to open a traditional IRA to receive the match, as current law restricts it to pre-tax accounts. Experts suggest this could create administrative complexity and potential fees, though a White House official indicated a future expectation of allowing Roth IRAs, which might require congressional action.

• The Saver’s Match program, starting with the 2027 tax year, offers a government match for retirement savers.
• Eligible individuals (single filers up to $35,500, joint filers up to $71,000) can receive a match of up to $1,000 for single or $2,000 for joint filers.
• A significant challenge is that the match, while earned through contributions to any retirement account, can only be deposited into a traditional IRA, not a Roth IRA.
• This creates a hurdle for individuals, particularly those enrolled in state-run auto-IRA programs which typically default to Roth IRAs.
• While a White House official expressed hope for future Roth IRA compatibility, current law requires it to go into pre-tax (traditional) accounts.
• This incompatibility could lead to administrative complexity and potentially higher fees for savers needing to maintain two separate IRA accounts.
• The Saver’s Match replaces the saver’s credit, which is available through the 2026 tax year.
• The program is part of broader efforts to address the estimated 53.7 million workers lacking access to employer-based retirement plans.