IRS seeks comments on SECURE 2.0 saver’s match contributions

The IRS on Thursday issued a notice requesting comments on saver’s match contributions to be paid by Treasury under the SECURE 2.0 Act of 2022 (Division T of the Consolidated Appropriations Act, 2023, P.L. 117-328).

Notice 2024-65 requests comments on all aspects of the contributions and asks specific questions on a variety of related topics.

The Sec. 6433 saver’s match program replaces the current saver’s credit under Sec. 25B. Under the program, beginning in 2027, Treasury will make a 50% matching contribution of up to $1,000 into an eligible taxpayer’s Sec. 401(k) plan or non-Roth individual retirement account (IRA), if the taxpayer has made an annual contribution of up to $2,000 into the plan or account.

The program phases out for taxpayers with modified adjusted gross income above certain thresholds. The match phases out for single taxpayers with income of between $20,500 and $35,000; for married taxpayers filing jointly with income between $41,000 and $71,000. The phaseout ranges will be adjusted for inflation after 2027.

The notice requests specific comments on the following topics:

• Eligibility for saver’s match contributions;
• How saver’s match contributions would be claimed;
• How the account receiving saver’s match contributions would be designated;
• The process for completing saver’s match contributions;
• Saver’s match recovery taxes on specified early distributions;
• Reporting and disclosure for saver’s match contributions; and
• How Treasury and the IRS could ensure that individuals know how to participate and receive benefits.

The comment deadline is Nov. 4, 2024. Comments can be submitted at regulations.gov or by mail to IRS, CC:PA:01:PR (Notice 2024-65), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044.

To comment on this article or to suggest an idea for another article, contact Kevin Brewer at Kevin.Brewer@aicpa-cima.com.