For lower- and moderate-income workers, the upcoming federal Saver’s Match—set to debut in the 2027 tax year—could significantly bolster their retirement savings. However, many current savers may find they need to open a different type of account to receive these funds.
Established under the 2022 Secure 2.0 Act, the Saver’s Match program provides eligible savers with an annual government contribution of up to $1,000 for single filers and $2,000 for those filing jointly. This benefit is available to those saving through individual retirement accounts (IRAs) or employer-sponsored plans like 401(k)s.
The complication lies in the distribution: while contributions to a Roth IRA qualify a worker for the match, the matching funds themselves can only be deposited into a traditional IRA. Consequently, experts warn that savers who exclusively use Roth accounts—including the vast majority of participants in state-run auto IRA programs—will need to establish a traditional IRA to claim the benefit.
According to the Center for Retirement Initiatives at Georgetown University, as of April 30, state-run programs held $3 billion in assets across more than 1.2 million accounts.
“State programs absolutely want, can and will help their participants take advantage of the [Saver’s Match] because these participants are exactly the low- to moderate-income workers the match was designed for,” said Angela Antonelli, the center’s executive director.
Antonelli noted that “unnecessary administrative complexity” exists because the match requires a traditional IRA, whereas most state programs default savers into Roth IRAs.
In a response to CNBC, a White House official stated that while operational details are still being finalized, the ultimate goal is to allow matches to be deposited into both traditional and Roth IRAs. However, experts suggest that changing the current law to permit Roth deposits would likely require congressional action.
“It’s in the law,” explained Ed Slott, a certified public accountant and IRA expert. “It specifically says the match can only go to pre-tax accounts, which is somewhat contradictory since contributing to a Roth qualifies for a match that cannot be placed in that same Roth.”
Eligibility Requirements for the Saver’s Match
Single taxpayers earning up to $20,500 and joint filers earning up to $41,000 qualify for a government match equal to 50% of their contributions, up to a maximum of $1,000 for singles. Reduced matching contributions are available for single filers earning between $20,500 and $35,500, and for joint filers earning up to $71,000.
This program replaces the nonrefundable saver’s credit, which remains available through 2026. Unlike the credit, which can only reduce tax liability, the Saver’s Match provides a direct contribution to the retirement account, potentially increasing a saver’s total assets more effectively.
The program is part of a broader effort to address the retirement gap. Research from the Economic Innovation Group indicates that approximately 53.7 million workers aged 18 to 65 lack access to an employer-sponsored retirement plan.
To facilitate enrollment and distribution, a new website, TrumpIRA.gov, is expected to launch next year. While the Treasury Department has not yet issued official guidance, experts anticipate the match will be distributed in early 2028 following the filing of 2027 tax returns.
The Challenge for State-Run Program Participants
Currently, 17 states operate retirement programs for workers without company plans, with Hawaii expected to join later this year. Most of these programs automatically enroll employees in Roth IRAs via payroll deductions—typically starting at 3% or 5%—unless the employee opts out.
The distinction between the two accounts is significant: traditional IRA funds are generally locked until age 59½ unless a penalty is paid, whereas Roth contributions can be withdrawn at any time without taxes or penalties because they are made with after-tax dollars.
In an ideal world, if there was the ability to take those matched dollars into a Roth, I don’t think anyone would argue [with] that.
Courtney Eccles
Senior vice president of relationship management at Vestwell
Data from Vestwell, a fintech firm managing many of these state programs, shows that fewer than 1% of participants switch from the default Roth to a traditional IRA.
Courtney Eccles, senior vice president of relationship management at Vestwell, emphasized that this incompatibility affects all Roth savers, regardless of whether they are in a state program: “Anyone who is saving for retirement and the only vehicle they’re currently utilizing is a Roth IRA—they’re going to have the same potential concern.”
Potential Costs of Multiple Accounts
One proposed solution is for workers to open a traditional IRA as a “sidecar” account specifically for the Saver’s Match. However, Eccles warned that this could lead to higher administrative fees for the worker.
John Scott, director of the retirement savings project for the Pew Charitable Trusts, suggested the Treasury Department could mitigate these issues. “If [the state] already set up a Roth for the participant, maybe some of the paperwork that’s required to open the traditional IRA would be waived or reduced,” Scott said, noting that this would simplify the process and potentially lower costs.