S. 5507: Saver's Match Enhancement Act of 2026

This bill would change the federal “Saver’s Match,” a tax credit meant to help lower- and moderate-income people save for retirement.

What changes

• Raises the match rate: The government match would increase from 50% to 100% of eligible contributions. In practical terms, someone who puts money into a qualifying retirement account could receive a dollar-for-dollar federal match, up to the program limit.
• Expands who can qualify: The income cutoff for eligibility would rise from $41,000 to $85,000, making the match available to more people.
• Allows Roth-style accounts: The bill would let the saver’s match work with certain Roth retirement accounts, including qualified Roth contribution programs and Roth IRAs, rather than being limited to traditional pre-tax accounts.
• Changes tax treatment of the match: It would specify that matching amounts tied to designated Roth contributions are treated differently for tax purposes, so the law can properly account for Roth-style contributions in the program.
• Updates inflation indexing: The bill would adjust the law so the income threshold and related amount can be indexed for inflation going forward, rather than staying fixed.

When it would take effect

The changes would apply to taxable years beginning after December 31, 2026.

Relevant Companies

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