Finance

New Saver’s Match Program to deposit up to $1,000 directly into retirement accounts starting in 2027

Tens of millions of Americans could benefit from “free money” as part of a new federal program that will replace the Saver’s Credit.

Pixabay

Roddy Cons

Scottish sports journalist and content creator. After running his own soccer-related projects, in 2022 he joined Diario AS, where he mainly reports on the biggest news from around Europe’s leading soccer clubs, Liga MX and MLS, and covers live games in a not-too-serious tone. Likes to mix things up by dipping into the world of American sports.

Update: Feb 11th, 2025 05:06 EST

21.9 million Americans could receive a welcome boost to the tune of $1,000 when filing their taxes from 2027 onwards thanks to the Saver’s Match, a new federal program that will replace the Saver’s Credit.

Who is eligible for the Saver’s Match?

Taxpayers who earn under a certain income threshold and contribute to a retirement plan such as a 401(k) or an individual retirement account are those who could benefit.

Single taxpayers who have an adjusted gross income of $20,000 or less, and joint filers who make no more $40,000, are those who are eligible.

The government will match 50% of a contribution of up to $2,000 per year to a qualified retirement account, which means a maximum return of an extra $1,000 per year. Additionally, single filers who make between $20,000 and $35,000 qualify for reduced contributions.

If you are in either of those groups, the amount you receive from the government will depend on your retirement account contributions.

Unlike the Saver’s Credit, the program will be available even to people who owe tax.

“Free money” to give Americans huge wealth boost

According a study conducted by Morningstar Retirement, the Saver’s Match is predicted to give eligible Americans a 12% boost to their wealth in retirement, once it comes into effect.

Spencer Look, Morningstar’s associate director of retirement studies, claims: “It’s a great tool to help incentivize savings and build on the principles of behavioral finance. Even if people only qualify for a partial match, this is free money to get from the government for retirement”.

Uncertain future for skate/surf brands Quiksilver and Billabong

ASTRONOMY

Quipu, the largest superstructure in the universe

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.

Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.