The 2026 retirement savings contributions credit, and the federal match that replaces it in 2027
Updated October 2026
You must be 18 or older at the end of the year, not a full-time student during any part of five months of the year, and not claimed as a dependent on someone else’s return. Contributions that count: traditional and Roth IRAs; elective deferrals to a 401(k), 403(b), governmental 457(b), SARSEP or SIMPLE plan; voluntary after-tax contributions to a qualified plan; and contributions to an ABLE account for which you are the beneficiary. Rollovers do not count. Employer contributions, including the match, do not count.
From IRS Notice 2025-67 (November 2025). Contributions up to $2,000 per person ($4,000 for a married couple) are multiplied by the rate for your AGI.
| Filing status | 50% credit | 20% credit | 10% credit |
|---|---|---|---|
| Married filing jointly | Up to $48,500 | $48,501 to $52,500 | $52,501 to $80,500 |
| Head of household | Up to $36,375 | $36,376 to $39,375 | $39,376 to $60,375 |
| All other filers | Up to $24,250 | $24,251 to $26,250 | $26,251 to $40,250 |
Above the 10% band the credit is zero. Because the bands are cliffs, one dollar of AGI can change the rate: a head of household at $39,375 gets 20%, at $39,376 only 10%. A traditional IRA or pre-tax 401(k) contribution lowers AGI, so it can move you into a better band and earn the credit at the same time.
The IRS example: Jill, married filing jointly, earned $41,000 in 2021, her spouse had no earnings, and she put $2,000 in a traditional IRA, bringing their AGI to $39,000. That is within the 50% band (up to $39,500 for joint filers in 2021, $48,500 in 2026), so the credit is 50% × $2,000 = $1,000.
The same couple in 2026 shows the limit the example leaves out. The credit is still $1,000, but it is nonrefundable: it can only reduce income tax. With $39,000 of AGI and the $32,200 standard deduction, their 2026 tax before credits is $680, so only $680 of the credit can be used and the rest is lost. Other credits, such as the child tax credit, may use up the tax first.
AGI is Form 1040 line 11 for 2026, after any traditional IRA deduction. Contributions are the amounts you put in for 2026 (IRA contributions made by the April 2027 deadline count for 2026; 401(k) deferrals appear in Form W-2 box 12). Distributions to enter are those taken by you (and on a joint return, your spouse) from retirement plans, IRAs or ABLE accounts during the testing period: 2026, the two years before it, and 2027 up to your filing due date. The calculator estimates your tax from AGI with the standard deduction to show the nonrefundable cap.
| Saver | 2026 rate | Credit figured | Credit usable (tax cap) | 2027 match rate | 2027 match deposit |
|---|---|---|---|---|---|
| Single, $35,000 AGI, $1,000 to a Roth IRA | 10% | $100 | $100 | 2% | $20 |
| Married, $46,000 AGI, $2,000 each | 50% | $2,000 | $1,380 | 42% | $1,680 |
| Head of household, $39,000 AGI, $2,000 to a 401(k) | 20% | $400 | $400 | 32% | $640 |
| Head of household, $39,500 AGI, same $2,000 | 10% | $200 | $200 | 31% | $620 |
| Single, $24,000 AGI, $2,000 to a 401(k) | 50% | $1,000 | $790 | 39% | $780 |
| Married, $60,000 AGI, $1,500 from one spouse | 10% | $150 | $150 | 19% | $285 |
The joint couple at $46,000 earns a $2,000 credit on paper, but their 2026 tax is $1,380, so that is all they can use. Rows three and four are $500 apart and lose half their credit at the band edge. The 2027 match does not depend on owing tax, which is why it helps low earners more than the credit did.
SECURE 2.0 (section 103) created the Saver’s Match in section 6433 of the tax code, for tax years beginning after December 31, 2026. It pays 50% of up to $2,000 of each eligible person’s retirement contributions, a match of up to $1,000, as a deposit into the saver’s 401(k)-type plan, 403(b) or traditional (non-Roth) IRA after the tax return is filed. It is not limited by your tax. The 50% rate is cut by one point for each 1/50 of the phase-out range your modified AGI exceeds the threshold, rounded down:
| Filing status | Phase-out starts | Match ends | Match rate at sample incomes |
|---|---|---|---|
| Married filing jointly | $41,000 | $71,000 | $41,000: 50%, $50,000: 35%, $60,000: 19%, $71,000: 0% |
| Head of household | $30,750 | $53,250 | $30,750: 50%, $37,500: 35%, $45,000: 19%, $53,250: 0% |
| All other filers | $20,500 | $35,500 | $20,500: 50%, $25,000: 35%, $30,000: 19%, $35,500: 0% |
A match under $100 can be taken as a nonrefundable credit instead. Matched money withdrawn early can be recaptured. At the same time, for tax years beginning in 2027 the Saver’s Credit itself covers only contributions to your own ABLE account, with the cap rising to $2,100 (Public Law 119-21). Treasury had not issued detailed Saver’s Match guidance for savers as of October 22, 2026, and the thresholds above are the statutory 2027 amounts, indexed only after 2027.
The credit and the employer match are independent: your own $2,000 of 401(k) deferrals can earn both a 50% employer match and a 50% Saver’s Credit. The employer’s money never counts as your contribution for the credit. In 2027 a federal Saver’s Match deposited into the same 401(k) adds a third layer.
It estimates tax with the standard deduction and ignores other credits, so the usable-credit figure is an upper bound when you also claim the child tax credit or the child and dependent care credit. It does not decide student or dependent status for you, and it applies the 2027 match rules to 2026 dollars as a preview. For the match it uses AGI as entered; the law measures MAGI without deductions for retirement contributions, so add back a traditional IRA deduction when previewing 2027. If you rely on the credit or match in a tight budget, a VITA site or tax professional can run Form 8880 with your full return.
Counting a rollover. Moving money from a 401(k) to an IRA is not a new contribution. Forgetting distributions. A withdrawal in the prior two years, or by your filing date, reduces the contributions counted. Expecting a refund. The credit only reduces tax owed. Students. Full-time students for five months of the year are excluded, even with a job and a 401(k). Assuming a Roth IRA will receive the 2027 match. The match goes only to a 401(k)-type plan, 403(b) or non-Roth IRA.