Decoder · Accounts
A tax credit for lower-income savers who contribute to a retirement account — up to 50% of the first $2,000 contributed, within income ceilings (2026: $40,250 single, $80,500 married filing jointly). From 2027, the law replaces it with a Saver's Match: the government deposits a match into your IRA or plan instead. Either way, it is the one step of the order where the government adds money because you started.
401(k), in plain words403(b), in plain wordsEmployer match, in plain words