- IRS used 2025 tax-return information to identify potential notice recipients.
- Head-of-household filers receive the full rate through $30,750 in 2027.
- TrumpIRA.gov is expected to list participating IRA institutions starting in 2027.
The IRS began mailing Notice CP321J to taxpayers it identified as potential recipients of a new retirement-savings benefit. It applies to qualifying contributions made in 2027 and can add up to $1,000 a year for an eligible saver. The notice is not a payment or an approval, and recipients do not need to respond.
The match is conditional. A saver must make eligible contributions and meet the program’s rules; a letter does not establish that those conditions will be met. People who did not receive one are not automatically excluded.
Created by the SECURE 2.0 Act of 2022, the Saver’s Match takes effect for contributions after 2026. It replaces the Saver’s Credit for most retirement savers, though contributions to ABLE accounts may still qualify for that credit.
The IRS used 2025 tax-return information to identify potential recipients. A person’s actual eligibility will depend on their circumstances and contributions during the contribution year.
The notice flags a possibility, not an approval
The benefit is a retirement contribution match, not a cash check. In general, the federal contribution goes into an eligible retirement plan or IRA alongside the saver’s own money.
The amount depends on both the contribution and the matching rate. A person who receives the notice should not treat it as a guarantee of money or as a request to pay a fee. No response is required.
The maximum depends on contributions and income
The match equals 50% of the first $2,000 a person contributes in a year. A qualifying saver who contributes at least $2,000 and receives the full rate could get the $1,000 maximum. It is an annual maximum, not a one-time payment.
A married couple filing jointly could receive up to $2,000 combined, but only if each spouse qualifies and contributes enough. Smaller deposits can still earn a match: $240 in annual contributions at the full rate would produce $120.
Only the employee’s own contributions count toward the calculation. An employer’s matching contribution does not count, and neither do rollovers or trustee-to-trustee transfers. There is no minimum contribution amount.
A match of more than zero but less than $100 may be elected as a refundable tax credit instead of a deposit. That exception does not turn the full $1,000 maximum into cash.
Who qualifies and how do income limits affect the match?
The match rate declines as income rises through the phaseout range, then reaches zero at the upper limit. The income thresholds are:
| Filing status | Full 50% match through | Partial match | No match at |
|---|---|---|---|
| Married filing jointly | $41,000 | $41,001–$70,999 | $71,000+ |
| Head of household | $30,750 | $30,751–$53,249 | $53,250+ |
| Single or married filing separately | $20,500 | $20,501–$35,499 | $35,500+ |
A person with income in the phaseout band receives less than the full rate. For example, a single filer with $30,000 in modified adjusted gross income who contributes $1,500 would receive a 19% rate and a $285 match.
Income thresholds are described using both modified adjusted gross income (MAGI) and adjusted gross income (AGI). The terms are not interchangeable.
To qualify for the Saver’s Match, a saver must be 18 by the end of the tax year, make qualifying contributions, not be claimed as someone else’s dependent and be a U.S. resident for tax purposes. A student restriction also applies, but the complete statutory definition is not detailed in the notice information.
Eligible savings may include contributions to a 401(k), 403(b), governmental 457(b), traditional IRA or Roth IRA. The specific account matters because the retirement provider must be able to accept the government contribution.
Save for the Saver’s Match, then claim it with the return filed in 2028
The contribution year and the claim year are different. The steps are:
- Make qualifying retirement contributions during 2027.
- Claim the match on Form 8880-A with the 2027 federal return filed in 2028.
- Check whether the plan or IRA provider will accept the match.
Treasury says eligible matches will begin being paid in 2028. Plans and IRA providers will not necessarily be required to accept the funds, so a saver’s existing account may not be suitable.
Starting in 2027, TrumpIRA.gov is expected to list institutions offering IRAs that can receive the match. Keeping contribution records will help when it is time to file. The IRS notice itself does not need a reply.
