Many of our clients have been receiving letters from the IRS dubbed “IRS Notice CP 321J” and have many questions. It advises that the fed may be willing to match your retirement contributions. As professional bookkeepers, we have everything you need to know below.

What is the Saver’s Match Program?

The Saver’s Match program is a new government matching contribution of up to 50% of what you contribute to your retirement account each tax year. You likely received this notice when you claimed the Saver’s Credit on your 2025 tax return. It was also sent to those whose 2025 income matched into in the range of Saver’s Match eligibility. The program will begin in tax year 2027 and will replace the standard credit for any contributions you make to eligible IRAs or retirement plans. Best of all, it matches up to $1,000 of contributions for individual tax filers. Likewise, it matches up to $2,000 for married couples who file jointly.

Did you know? Over half of American families have a retirement account at 54.9% with an average balance of $106,000? Source: 24/7 Wall St

Who is Eligible for the IRS Saver’s Match Program?

Unfortunately, most individuals and married couples may not qualify for this particular program. Single individuals must earn less than $35,500 on their 2027 taxes. Married couples must earn less than $71,000. With these numbers, it can be difficult to make contributions to a retirement account, but we recommend doing so and taking advantage of this offer. Those of you who own a business should advise your workers of this program. The federal government will match up to 50% of what you contribute. So for example, if you are single and are able to contribute $2,000 to your retirement account, the government will contribute an additional $1,000 into your designated account. You don’t even have to pay federal income tax to be eligible, but you must file. Be sure to use a tax professional to make sure you not only receive this benefit, but that it goes to the correct account.

Who is Not Eligible for the IRS Saver’s Match Program?

All who apply must meet all of the below to take advantage of this:

  • You must be at least 18 by the end of the tax year.
  • You may not be a full time student as defined in section 152(f)(2).
  • No one else may claim you as a dependent on their tax return.
  • Make regular or one time contributions to an eligible retirement plan or IRA in 2027.
  • You must be a U.S. citizen or resident. Those who live in U.S. territories must file through their appropriate tax agency.

    • You may read more on the IRS site here https://www.irs.gov/credits-deductions/savers-match

    Bookkeeper’s Guide to Retirement Contributions in Houston

    Are you looking to make the most of your retirement contributions for you, your family, and/or your business? Feel free to set up an appointment to learn more about how to make the most of this and other expert strategies.