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Seyfarth Synopsis: Section 103 of the SECURE Act 2.0 replaces the Saver’s Credit with a new matching contribution from the federal government. Since the enactment of SECURE 2.0, there have been a number of questions about the implementation of this new matching contribution, and how it will operate. In IRS Notice 2026-48 (“Notice”), the Treasury Department and IRS announced that they intend to propose regulations and other guidance regarding the Saver’s Match program. The Notice does not establish proposed or final regulations. Rather, it outlines the government’s current views on how it expects the Saver’s Match program to work and previews issues that Treasury and the IRS anticipate addressing in future guidance.

What is the Saver’s Match?

Beginning in 2027, the Saver’s Match will replace the federal Saver’s Credit. By way of background, the Saver’s Credit is an income tax credit of up to $1,000 ($2,000 if married filing jointly) that reduces a taxpayer’s federal income tax liability.   

Instead of providing a tax credit, the Saver’s Match is a contribution to an employer’s qualified retirement plan or an IRA from the federal government of up to 50% of what the taxpayer contributes to the retirement plan or IRA, capped at a match of up to $1,000. The Saver’s Match rate is based on an individual’s tax filing status and modified adjusted gross income. For married individuals filing jointly, the match applies to each spouse. Certain individuals, such as those that are under age 18, are not eligible. After SECURE 2.0 was enacted, a number of open questions arose with respect to the Saver’s Match, primarily administrative questions and concerns. For example:

  • Are employer-sponsored retirement plans required to accept these contributions?
  • How will taxpayers “apply” for the Saver’s Match contribution?
  • How will these Saver’s Match contributions be transmitted from Treasury to an employer-sponsored retirement plan?
  • What do employer’s do with these contributions once they are in the plan?  Do they have to be separately tracked?
  • What withdrawal, distribution and reporting requirements apply to Saver’s Match contributions?
  • Will recordkeeper/TPA platforms support these contributions?
  • What if errors arise in the calculation and/or transmittal of the Saver’s Match? How are these issues corrected?

The Notice directly addresses several of the questions outlined above, while leaving room for additional guidance and regulations.

Continue Reading New Saver’s Match, New Plan Sponsor Decisions
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Seyfarth Synopsis: The IRS has issued further guidance on Trump Accounts addressing employer contributions and eligible investments in which Trump Account funds may be invested.

We discuss the new guidance in our Legal Update here. As discussed in our prior blog posts, including “Trump Accounts: The New Kid on the IRA Block” and “No ERISA…

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Seyfarth Synopsis: The Department of Labor (DOL) recently issued Technical Release 2026-02, which clarifies that neither Trump Accounts nor employer contributions to Trump Accounts are considered “employee pension benefit plans” under Section 3(2) of ERISA. For additional information about Trump Accounts, please see our prior to blog posts here and here.

What We Already Knew about Employer and Employee Contributions to Trump Accounts

The One, Big, Beautiful Bill Act and related Treasury guidance previously provided the following parameters for employer and employee contributions to Trump Accounts:

  • Employers may contribute up to $2,500 to Trump Accounts of young employees or children of employees under an Internal Revenue Code Section 128 program (“Section 128 Program”). These contributions are not considered taxable income to the employees or the Trump Account beneficiaries.
  • The $2,500 limit applies on a per employee basis, meaning that if an employee has multiple children with Trump Accounts, the employer’s aggregate contributions to those children’s Trump Accounts may not exceed $2,500.
  • Employers can facilitate pre-tax employee contributions to Trump Accounts for the employee’s dependents (but not the employee) through a Section 125 cafeteria plan.  However, these employee contributions are technically still considered “employer” contributions under a Section 128 Program and would therefore be subject to the same $2,500 limit described above.
  • All Section 128 Program contributions must be made pursuant to a written plan document and the contributions must comply with applicable nondiscrimination testing rules (which are expected to look similar to the nondiscrimination testing rules applicable to Dependent Care Spending Accounts).
Continue Reading No ERISA Strings Attached: The DOL Weighs in on Employer and Employee Contributions to Trump Accounts
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Seyfarth Synopsis: Since Trump Accounts made their debut as the “New Kid on the IRA Block” in December 2025, Treasury and the IRS have released proposed regulations that add important—but not always simplifying—details to the program. 

The proposed regulations, released on March 9, focus heavily on pilot contribution eligibility and enrollment, adding new…

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Since 2019, Congress has enacted three major pieces of legislation impacting retirement plans, significantly changing the retirement landscape. The legislation contained a number of amendments to the Internal Revenue Code and the Employee Retirement Income Security Act, as amended, that impact employer-sponsored retirement plans (e.g., 401(k) plans, 403(b) plans, defined benefit plans, and even Puerto…

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Seyfarth Synopsis: The IRS recently issued Notice 2025-68, providing initial guidance on a new savings vehicle: Trump Accounts, created under Section 530A of the Internal Revenue Code by the One, Big, Beautiful Bill Act (OBBBA). While proposed regulations are still forthcoming, the recent IRS guidance provides a high-level overview of various Trump Account features, including…

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Seyfarth Synopsis: Recently the IRS issued Rev. Proc. 2025-32 and 2025-61, announcing the cost-of-living adjustments to certain welfare and fringe benefit plan limits for 2026 and applicable dollar amounts for the remainder of 2025.

2026 Limits for Certain Health and Fringe Benefits

The Affordable Care Act (ACA) established the Patient-Centered Outcomes Research Institute (“PCORI”), to…

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Seyfarth Synopsis: The IRS is back to work and just announced the 2026 annual limits that will apply to tax-qualified retirement plans. But wait, there’s more – a surprise increase in the inaugural FICA wage limit for purposes of the mandatory Roth catch-up requirement.  Employers maintaining tax-qualified retirement plans will need to make sure their plans’ administrative procedures are adjusted accordingly.

In Notice 2025-67, the IRS announced the various limits that apply to tax-qualified retirement plans in 2026. The “regular” contribution limit for employees who participate in 401(k), 403(b) and most 457 plans will increase from $23,500 to $24,500 in 2026. The “catch-up” contribution limit for individuals who are or will be age 50 by the end of 2026 is increased from $7,500 to $8,000. 

However, the “super” catch-up contribution limit for individuals aged 60 to 63 on December 31, 2026, remains $11,250. Some were expecting that limit to be indexed to 150% of the regular catch-up limit. However, the Internal Revenue Code provides that the limit is the greater of $10,000 or 150% of the 2024 catch-up limit (i.e., $7,500). As a result, the “super” catch-up contribution limit remains $11,250 for 2026, and the $11,250 limit may be indexed for inflation in future years. 

Continue Reading Shutdown’s Over—IRS Wastes No Time Reminding You You’re Still Not Saving Enough
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Seyfarth Synopsis: Earlier today, Treasury and the IRS issued highly-anticipated final regulations addressing several changes to the catch-up contribution provisions implemented by SECURE 2.0.  Proposed regulations were issued earlier this year (see our Legal Update here), and administrative questions lingered following the issuance of the proposed regulations. The much-welcomed final regulations answer a number of open questions that we had been grappling with following the enactment of SECURE 2.0 and the issuance of the proposed regulations earlier this year. Below is a high-level overview of several pressing issues that have been addressed by the final regulations. We will be issuing a more comprehensive Legal Update on the final rules in the coming days.

1. Designated Roth Contributions Counted for Purposes of Roth Catch-up Requirement

Under the proposed regulations, designated Roth contributions made by a participant at any point within a calendar year must be counted towards satisfying the Roth catch-up requirement (“Roth Catch-Up Requirement”). This provision caused administrative concerns and several commenters asked that the final rules make this permissive so that plans had the choice as to whether to include Roth deferrals made by the participant at any point in the calendar year towards the Roth Catch-Up Requirement. The final regulations provide plan administrators that use the deemed Roth approach with some – but not universal – flexibility. The final regulations do not seem to go so far as making this optional approach available in all situations, which we will cover in the forthcoming Legal Update. 

Continue Reading Final Catch-Up Rules: What Now? (Spoiler Alert: There is No Extension)
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Seyfarth Synopsis:  Over the years, plan sponsors and administrators have wrestled with the question of what to do with the accounts of participants who left employment years earlier and cannot now be located.  Notwithstanding their best efforts, plans continue to maintain accounts of participants who are either missing or unresponsive to plan correspondence (“missing participants”). On January 14, 2025, the DOL issued Field Assistance Bulletin (FAB) 2025-01 that allows sponsors and administrators of ongoing defined contribution (DC) plans to transfer unclaimed small accounts to a state unclaimed property fund of the participant’s last known address provided the fund satisfies certain requirements.

The issue of what to do with the accounts of missing participants is an age-old question. In 2014 the DOL issued FAB 2014-01, stating that an IRA was the preferred destination for unclaimed defined contribution (DC) plan accounts. That same FAB also acknowledged that IRAs may not be available for terminating DC plans, and suggested that in certain circumstances, a state unclaimed property fund or an interest-bearing FDIC-insured bank account might also be appropriate. More recently, the DOL became concerned that IRAs may not be the sole (or even most) appropriate destination for unclaimed plan accounts, as IRAs charge fees that often exceed the investment returns of small accounts, resulting in the account being eaten away by fees. In fact, when plan sponsors started looking to IRAs as the destination of its unclaimed account balances, the sponsors found it challenging to find an IRA provider who would accept all accounts, particularly small accounts, and that the limited choices resulted in front end, back end, and/or annual fees that would quickly exhaust the account balance. From the fiduciary perspective, many plan fiduciaries were reluctant to make such transfers. As time passed, however, more IRA providers became available and fees dropped. But not necessarily to zero.

Continue Reading Missing Participants – What to do With Abandoned Accounts