Saver's Match Enhancement Act of 2026

(a) Increase in matching rate

(1) In general. Paragraph (1) of section 6433(b) of the Internal Revenue Code of 1986 is amended by striking 50 percent and inserting 100 percent.

(2) Conforming amendment. Paragraph (2) of section 6433(b) of such Code is amended by striking 50 and inserting 100.

(b) Expansion of eligibility

(1) In general. Clause (i) of section 6433(b)(3)(A) of the Internal Revenue Code of 1986 is amended by striking $41,000 and inserting $85,000.

(2) Conforming amendment. Paragraph (1) of section 6433(h) of such Code is amended by striking $41,000 and inserting $85,000.

(c) Roth treatment of matching contributions

(1) In general. Subparagraph (A) of section 6433(e)(2) of the Internal Revenue Code of 1986 is amended by striking subclause (II) of clause (i) and all that follows through clause (ii) and inserting the following:

(II) consists of a qualified Roth contribution program (as defined in section 402A(b)), or

(ii) a Roth IRA,

(2) Treatment as Roth contribution. Paragraph (2) of section 6433(f) of such Code is amended—

(A) by striking clauses (i) and (ii) of subparagraph (A) thereof and inserting the following:

(i) a designated Roth contribution (as defined in section 402A(c)(1)) which is an elective deferral made by the individual, if contributed to an applicable retirement savings vehicle described in subsection (e)(2)(A)(i), or

(ii) a Roth IRA contribution made by such individual, if contributed to such a plan,

(B) by striking and at the end of subparagraph (B),

(C) by striking the period at the end of subparagraph (C) and inserting , and, and

(D) by adding at the end the following new subparagraph:

(D) in the case of a designated Roth contribution, such contribution shall be excludable from gross income without regard to section 402A(a)(1).

(3) Conforming amendments

(A) Subparagraph (B) of section 6433(f)(2) of such Code is amended by inserting , 402A(c)(2) after 402(g)(1).

(B) Subparagraph (B) of section 6433(f)(6) of such Code is amended by striking the comma at the end of clause (i) and inserting , and, by striking clause (ii), and by redesignating clause (iii) as clause (ii).

(d) Inflation adjustment. Paragraph (1) of section 6433(h) of such Code, as amended by subsection (b)(2), is further amended by striking the $85,000 amount and inserting the $2,000 amount in subsection (a) and the $85,000 amount.

(e) Effective date. The amendments made by this section shall apply to taxable years beginning after December 31, 2026.