Regulatory Updates
Regulatory Updates provide quick access to employee benefit regulations, rulings and other guidance released by governmental agencies in the U.S. and Canada.
New updates to this page may be included in Today’s Headlines which is emailed to International Foundation members each business day. Inquiries regarding these updates should be directed to the Benefits Knowledge Center at the International Foundation at (888) 334-3327, option 5 or [email protected].
Search Regulatory Updates
IRS Requests Input on Implementation of Saver's Match Contributions; Comments Due November 4
Sep 6, 2024, 13:51
by
Amanda Wilke
The Internal Revenue Service (IRS) issued Notice 2024-65 requesting comments on Saver’s Match contributions to be paid by the Department of the Treasury under the SECURE 2.0 Act of 2022. Beginning in 2027, by making annual contributions of up to $2,000 to a 401(k)-type plan or an Individual Retirement Account (IRA), an individual can receive as much as an annual $1,000 Saver’s Match contribution from the Treasury.
Unlike the existing Saver’s Credit, a nonrefundable tax credit that will be replaced by Saver’s Match contributions, the Saver’s Match contribution is paid by Treasury to a 401(k)-type plan or non-Roth IRA designated by an individual claiming the Saver’s Match contribution. The amount of an individual’s Saver’s Match contribution depends on the individual’s income or joint income level.
The notice requests comments on:
- 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
- Miscellaneous issues, including how Treasury and the IRS could ensure that individuals in underserved communities know how to participate and receive the full benefits of Saver’s Match contributions
Comments are requested from all stakeholders, including low- to moderate-income taxpayers, volunteer and for-profit tax preparers, organizations that serve and advise low- to moderate-income taxpayers, IRA custodians and trustees, and retirement plan administrators, recordkeepers, and plan sponsors.
Comments are due November 4, 2024.