Retirement Clearinghouse (RCH) has launched two new Saver’s Match resources.
The resources will offer plan sponsors, plan providers and participants consolidated information about SECURE 2.0’s Saver’s Match program, as well as the Saver’s Match Estimator, a new tool that will calculate an estimated matching contribution under the program.
Using the Saver’s Match Estimator, individuals can enter their tax filing status, their adjusted gross income (AGI) and their annual retirement plan contribution. The estimator will then calculate an estimated matching contribution that they could receive under the program. RCH notes that the tool is intended for educational purposes only, does not produce a definitive Saver’s Match calculation and does not constitute legal and/or tax advice.
This resource also answers questions about the Saver’s Match, including who qualifies to receive a match, how much are the matching contributions individuals can receive, when the match goes into effect, who it benefits, challenges individuals could face, and where to learn more about the program, among other points.
According to a March report by the Employee Benefit Research Institute (EBRI), nearly 22 million Americans could qualify for the Saver’s Match provision in SECURE 2.0, which will take effect in 2027. The provision is focused on increasing the savings of lower-income workers by changing the current Saver’s Credit to a match, where the federal government will make a matching contribution to a qualified retirement plan of lower income workers. The match has a maximum value of $1,000 at a rate of $0.50 per dollar contributed by a worker, up to $2,000 annually. Scheduled to go into effect in 2027, the match would be directly added to the individual’s retirement plan after the worker applied for the match.
The new resources are openly available to the public at the following links:
The Definitive Guide to the Saver’s Match Program
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
