Will 403(b) Plans Have to Allow for Saver’s Match Contributions in 2027?

Q: I understand the new Saver’s Match provision will be effective in 2027. Will our 403(b) plan be required to allow for Saver’s Match contributions?

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

A: First, you are correct that the Saver’s Match is scheduled to become effective for taxable years beginning after December 31, 2026. As a refresher for our readers, the Saver’s Match is a new retirement savings incentive created by SECURE 2.0 Act that generally replaces the Saver’s Credit and allows eligible low- and moderate-income individuals to receive a federal matching contribution of up to $1,000 based on their retirement savings contributions.

A 403(b) plan is generally not required to allow Saver’s Match contributions, rather doing so is voluntary and may require additional administration (and a plan amendment).

The IRS recently provided guidance on implementation and administration in IRS Notice 2026-48, and additional guidance is expected.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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