The SECURE 2.0 law establishes a saver’s match to encourage retirement savings. Eventually, the match will replace the saver’s credit. There are some parallels between the two but also notable distinctions.
Investing in your financial freedom might win you a tax advantage this year. When filing your federal tax return, you can claim a portion of your contributions to qualified retirement savings accounts (Saver’s Credit). Your eligibility and the amount you are eligible for vary according to your retirement plan, adjusted gross income, filing status, and other variables.
Congress is considering legislation that would turn the Saver’s Credit into a government matching program for retirement plan contributions.