Proposal would raise the Saver’s Match rate and income amount

The proposal would set the Saver’s Match rate at 100 percent. This rate applies to the Saver’s Match under the tax code section named in the bill. This change would apply to tax years beginning after December 31, 2026.

The proposal would use $85,000 in the Saver’s Match eligibility rules. The amount applies to the eligibility provisions identified in the bill. The bill text does not provide all the eligibility rules needed to determine who would qualify. This change would apply to tax years beginning after December 31, 2026.

The proposal would allow the Saver’s Match rules to cover matching contributions tied to certain Roth contributions and state that a designated Roth contribution used for the match is excluded from income under the stated rule. These provisions concern Roth contributions connected to the Saver’s Match, including contributions to a qualified Roth workplace program or a Roth IRA. The text names designated Roth contributions and Roth IRA contributions made by an individual and contributed to a listed retirement savings vehicle. The exclusion from income applies to a designated Roth contribution under the stated rule; the text does not say that all employees’ ordinary Roth contributions are excluded. This change would apply to tax years beginning after December 31, 2026.

The proposal would add a $2,000 amount and the $85,000 amount to the inflation-adjustment provision. The provision concerns the amounts named in the Saver’s Match tax-code section. This change would apply to tax years beginning after December 31, 2026.