Details of Public Law 117-328, section 103 , Saver’s Match Consolidated

This provision would remove the nonrefundable tax credit (Saver’s Credit) and replace it with a Saver’s Match. Individuals who contribute to a retirement savings plan (other than rollover contributions) would receive a federal match of 50 percent of the employee’s contributions, up to $2,000 per individual. If the match is more than zero but less than $100, the individual would receive a credit against tax. The match would be deposited into the individual’s retirement plan.

The requirements to receive the match remain the same as the existing tax credit, such as a modified adjusted gross income (phase out, available to individuals who are 18 or over, and excludes individuals who are full-time students, or claimed as a dependent on another taxpayer’s return, or individuals who are nonresident aliens.

The match is available with respect to contributions to certain qualified cash or deferred arrangements, or certain annuity contracts that are purchased under a salary reduction agreement. The match is not available for contributions to a Roth IRA.