Sizing the Market for the Saver’s Match

SECURE 2.0 has many provisions aimed at improving the retirement plan system. One provision within this legislation that is focused on increasing the savings of lower income workers is changing the current Saver’s Credit to a match, where the federal government would make a matching contribution to a qualified retirement plan of lower income workers. The match would be directly added to the individual’s qualified retirement plan after the worker applied for the match. This provision is scheduled to go into effect in 2027.

Since implementing this match provision will be a substantial undertaking, this Issue Brief estimates the expected number of workers who would qualify for the match based on historical data and how many workers would be expected to receive these additional funds through the match. This will provide important information on the scale and impact on the system for both those administering the accounts and the workers receiving the additional dollars. Statistics of Income (SOI) tabulations (publicly available data from the Internal Revenue Service (IRS)) are used to determine these numbers, given their detail on tax specifics from the official tax forms used in them.

Among all tax filers, 83.8 million taxpayers had incomes that would have made them eligible for the Saver’s Match from these tabulations. However, some of these individuals did not have wage income, a requirement for contributing to a qualified retirement plan. From tabulations of tax filers with W-2 (wage) income, 69.0 million had incomes eligible for the Saver’s Match.
When examining the number who contributed to a qualified plan, it was found that 18.9 million workers contributed to an employment-based retirement plan and had incomes that would qualify for the Saver’s Match. In addition, 1.0 million unique individuals contributed to a traditional individual retirement account (IRA), and 2.0 million unique individuals contributed to a Roth IRA. This is a total of 21.9 million individuals who contributed to a qualified retirement plan and would have been eligible for the Saver’s Match based on the historical data examined.

While these numbers are solid ballpark figures, there are a few caveats that should be mentioned. These estimates could be a lower bound, because they only focus on those contributing to an employer plan who had their wage income reported on Form W-2, whereas some workers have their earnings reported on other forms, such as Form 1099. The new rules on covering part-time employees for employment-based plans would not have gone into effect during the historical timeframe of the data. State-run auto-IRA plans, which are almost exclusively Roth IRAs, would only have been in their infancy during the study timeframe, while the number of these accounts is now on track to reach one million (though not all, but many, would be within the income thresholds). Furthermore, those not filing taxes are not counted, nor is the possibility of more individuals contributing given the additional incentive from the match to contribute. In contrast, one factor that could reduce the number being eligible to qualify for the match is wage and income growth, as 2027 and the study year (2018) are several years apart, which included a high inflation period pushing some contributors above the income cutoffs. Nevertheless, these numbers are a good starting point for understanding the provision’s reach, and they show that the bulk of the individuals qualifying for the match will contribute to employment-based plans and a sizable number will contribute to Roth IRAs.

Figure 3 Tax Filers With Earnings QuF ailg ifu yrie n g 7 for the Saver's Match, 2018 w p E W r le it hil od h ct e uc iinc v te e he om Re tse he e tir s num te op b m e e low p b na etne r C s the ont l o ar e f Figur tr hr ibut soli esh d ions e old b a 5. , llpa s e Ta This st rx Y ka b figu is e li a sh arr c e e 2 cd s, t o 01 m for 8 he p”lis t( rhe e Fi he g a d Sa u r e rb e v y a e 4 m fe r ’ts ult w op M c ipl a p ata v y cne e ing h. at l) The s t . the A ha g aa jtoin d in, usi sh jutst ould (ed 69 ng .9 g bre toss p he m er e int cinc nt ent eione o r)p m ola aend d ( . tA io These nonj G n a I) s c oint su ut eo m st ff (p im 30 s fo tion a.1 te r st he Craig Copeland is Director of Wealth Benefits Research at the Employee Benefit Research Institute (EBRI). This Sizing the Market for the Saver’s Match Number of Those Who Contributed Who Would results. See Copeland, Craig, “EBRI IRA Database: IRA Balances, Contributions, Rollovers, Withdrawals, and Asset Allocation, Sa w p could e itv rhin c ee r nt ’ b s te he )M fil a a inc te low crh b o pe m er y r e c b fil eound gnt ing roup agst ,e s p s a bte fr us r co od a m us are uc e the e a tshe s b 18 ay te in0 ot onl low a7 l yI :of R foc A18 u fils on .9 e b m yill t hos tion he e num e ha arne vbing e rs w r of the ho ta irxpa cw on ay g te re ibu r s in e inc teodm a te o c hra en e inc por om m te pd e loy on gr m oup For enting m -b a W tsed o -2, w g e re t tthe ihe rerm ea es nt Issue Brief was written with assistance from the Institute’s research and editorial staffs. Any views expressed in Total in Income Groupings of Interest By Craig Copeland, Ph.D. Qualify for the Saver's Match, by Income However, to contribute to a retirement plan, either an employment-based plan or an IRA, the individual must have 2017 Update,” EBRI Issue Brief, no. 513 (Employee Benefit Research Institute, September 17, 2020) for more on num p som lan e b w e w it r or h inc of ke joint ro s h m e a as q v nd e ua tnon he lif iry - jing e oin ar nin tfor filg ets r r he s, e a Sa pnd or vtee trhe d ’s on n Ma m ot tc ult he h iplyi (rFi fo gng ur rm es, suc t he 4 b p ot e h trom caes For nt paa gne m es of l) 10 . 9nonj 9. The oint ne file wr r t ule yps es in Figur on covering e 2 long by the -te rm, this report are those of the author and should not be ascribed to the officers, trustees, or other sponsors of EBRI, (in millions) earnings 1) or w Single age inc and ome m . aTh rrie er de for filing e, tsep he a sa ra m te ely e: xe $3 rc 5, is5 e00 is (dpone hase us -out ing rta he nge W:- 2 t $20,50 a 2bula 0 t tions, sin o $35,5c 00 e )t.ho se receiving a W-2 February 29, 2024 • No. 602 contributions to IRAs. This result has been a consistent finding across multiple years. p re asu rt-ltting ime nu em m pbloy er eof es for nonj e oin mt p loy filem rs t ent o -g beatsed the pnum lansb w er ould of e not ach non havej oint gone fil int er o tye pff ee . c tUsing during the the int his erp tola oricta ion a l timse su frm am pe tion of , Employee Benefit Research Institute-Education and Research Fund (EBRI-ERF), or their staffs. Neither EBRI nor Married / Figure 6 Married / Head of ha ve ear2) nings. MaB rr ut ie d the fil ing W-2 t joint ablula y: $7 tions 1,00 onl 0 y (p b ha rese ak- out out rta he nge num : $4 b1,00 ers b 0y t m o a $7 rr1,00 ied fil 0) ing . jointly and those not filing jointly, t the he d tot ata al . tS ra ta dtiteio -rna un l I aRA uto c -I on RA tr ibut plans or, s w w hic ho h a would re alm ha ov st e e ha xc dl us inc ivom elye Ro s q tua h Ilif Ry Ais, w ng for ould the only Sa vha erv ’s e M ba etecn in h wa the s 1. ir1 inf maill nc ion y 5 EBRI-ERF lobbies or takes positions on specific policy proposals. EBRI invites comment on this research. Employer Tradtional The numb Adj eus r otf ed tho Gs re os E ha s s t Iv nc im ing om a tie nc eso o me f T s h wo ithi Js oie n nt W the h o Sa C ve o N r’s n on tM rji oi a btnt u ch tethre d S to e sho pa a ld R raso t e w th o uld In Hd ou b iv e s i ehi d ho u ghe a ldl rR tha etS in r ie ng 69. m le e 0 n mil t lion, as many Introduction and thus3) , a n a He ssu adm of pthous ion mu ehold st b:e $5 m3,25 ade 0 re (g pa ha rdse ing -out how ra nge the :nonj $30,75 oint0 t file o rs $5 a3 re ,2 d 50) ist.r ibuted across the nonjoint filing Sizing the Market for the Saver’s Match d (Fi ur ging uret 5 b he st otudy tom tp im ane efrl) a.m A e, djw us hi te le d tG he ro s num s Inc bo em r e of these Pa lacn cs ounts is IR now As* on Ro tr th a c IR k A to s*reaT co h o talne million (though not all, $1 under $5,000 189,932 5,763,556 76,741 314,250 5,372,565 H Ame owric eva ens r, som havee the indiv ir e idu arning als A c sould c re cp oo u ha rtn ev td e ( Io R cn ont A ta ) x ra ibut fo nd rms e C d o o to u the lb dot r B th a ha e n E n e W lig m -2s ib p,loy l e s uc fm oh e r n a th ts- e b Form a S sed av s e 109 prla 's n 9. M a Furthe nd atca h tr rmo adit re ion , sa ol I mR e A low . The ea rIne RS rs The SECURE 2.0 Act of 2022 has many provisions aimed at improving the retirement plan system. One provision within Figure 4 statuses. Since the nonjoint filers are broken out in t 6 he “all returns” tabulations, the distribution of the nonjoint filers but many, would be within $ the 1 u n inc deom r $5e ,0 t 0hr 0 esholds). Fur 0t.h 1e 8rmore, 0 tho .02se not fil 0.ing 10 taxes a 0.r3 e not counted, nor is the By Craig Co $5,0 pela 00 unnd der, $1 Ph. 0,00D. 0 , Emp 3loye 69,421 e Ben6 e ,fi 96t6 R ,41e 7search I 104,20ns 2 titut 7e 9 3,707 6,068,509 SOI do no Su ta t b file g ul ga es ta tions xted es g d Ci io vetatio not n the inc n ir :lude low Cop inc num ela ond, me bes rC .s on rTh aig e ,t83. hose “Sizi 9 mil ng wlho ion thec in on Ma clud tr rk ibut e ets for e tho to s the e b ot w Sa ho h ty v d ep o re ’ s M no s of t aha tp cla v he ,ns ” eE , aB rning aRI s t he Is ss , ue e so m th p Bloy reie fu fm , lle no. p no t- te 602 bnti ased al I this n t he leg tis op la tp ion th anel o af t Fi is foc gure u sed 1, t he on num incre ba esi r ng of tta he x file savris ngs unde of rlow thee rinc inc om om e et hr we or sh ke old rs s is c abh ov anging e from t he “Ta cb ur ler e 1.2. A nt Sall Re ver’s tu Crrn es: dit Estimates of Those Who Contributed to an Employer Plan and Would Be Eligible for the Saver's Match fr om them will be used. Figure 2 shows the distribution of nonjoint filers for each income grouping. Total Making a Roth IRA Contribution $5,000 under $10,000 0.50 0.04 0.12 0.6 possibility of more individuals contributing given the additional incentive from the match to contribute. In contrast, one $10,000 under $15,000 694,239 7,398,928 115,253 1,773,587 5,510,089 numb (E em r w po loy uld e eb e B e bne etw fit e e Re n sea thes re ch I nuns mb tit eu rst.e H , o Fe wb ervua er,r y g iv 29 en , 20 the 24 d). ata limitations, 69.0 million is the closest that can be derived e lective contributions and IRA contributions come from different reports. The Employee Benefit Research Inst1itute’s A t o djaus m te ad tc G h, ross whe Irn ec om thee fe , D de er dauc l g tion oves, a rnm nd ent Ta w x I ould tem m s, b ake y a Si ze ma of tchin Adg jus co te nt dr G ibut ross ion Inc to oa m q eua and lifieb dy rMa etirre itm al S ent ta p tus lan , T of ax Y low ea err $10,000 under $15,000 0.87 0.06 0.13 1.1 factor that could reduce the number being eligible to qualify for the match is wage and income growth, as 2027 and the $15,000 under $20,000 856,55A 5 T 6A ,888 ,2G 58 L A 129 N ,17C 7 E 2 ,004,610 4,754,471 for those with earnings. Integrated 401(k) Plan/IRA Database has data on both individual 401(k) plan participants and IRA owners and can link Figure 5 20 inc18 om (eFi w ling orkY ee rs a.r The 2019 m )” a t(cfh ile ha 18 s a in1 m 2m axi sm ) a urm e sh vaow luen. ofH $1 ow ,000 eve ra , tt he a r a ta te b ul of at$0 ion .50 p s do enot r dolla corrr e cspond ontribut to ed the by inc a w om orek e cru,t offs up Total Making Elective Contributions $15,000 under $20,M 00 a0 rried / 1.27 Non 0.06Married 0 ./1 3 Head 1 .o 5f Copyright Information: This report is 3 copyrighted by the Employee Benefit Research Institute (EBRI). You may study year a $r2 e0 ,seve 000 u ra nd l ye er $ a2r5 s ,0 a0 p0art, whic 1,20 h5 in ,0c 1lude 7 d a 6 ,high 615,11 inf 3 lation p 173,e 1r4 iod 1 pus 1hin ,80g 9, 2 som 45 e c4 ont ,63r 2ibu ,72t7ors above the income the individuals with both types of accounts. Using this database, it was determined that 10.8 percent of traditional IRA 6 Estimates of Those Who Contributed to a Traditional Individual Retirement t for o $2 the ,000 Sa. vThe er’s M ma attcch h w . Gould iven t bhis e d c iron M ec ast trly rria ea id nt dd /, eit d its a o Mts a he su rri m e indiv d ed / B t idua ot ha ht l’ts q he ua num lifie bd e rr e of tiM rte a am xpa rre ie nt y d e p /r s la is n a H ee fqta ua ed r lly of the d is wtor ribut kere a dp w plie ithin s f or SE By C UR theE e2.0 nd o ha f 2023, s man the y pre rov wis eions re ov a eim r 820, ed a 000 t im apcrco ov un ing ts tehe sta rb elitsirhe em d e un ntd p er lasn s taty est -run em . auto One -IR pA rov pla isn ion w s. Seit ehin Ce nte thir s le for gislation Adjusted Gross Income Total Joint Joint Separate Household Single $20,000 under $25,000 1.86 0.06 0.16 2.1 copy, print, or download this report solely for personal and noncommercial use, provided that all hard copies retain cutoffs. Nev$ e2 r5 the ,00le 0 ss un, dtehe r $se 30,num 000 bers a 1,2 re 6 8a ,9 g 37 ood sta 6r ,2 ting 27,7p 8oint 6 for 18 9 unde ,703rstand 1,ing 867 ,i1t8 s r 3 eac4 h, ,17 a0 nd ,90t0hey show that the bulk c ontributors were also 401(k) plan participants in the same year. When this 10.8 percent is multiplied by the 1.1 million Account (IRA) and Would Be Eligible for the Saver's Match Adj usted Gross Income Total Joint Spouses Contribute Nonjoint Separate Household Single Total t t R ehe ha a ec tire t h inc m is foc me atco nt h. m u Initia sed e Thi gr s p oup on tivre ov inc ing s,i si rGe eon of ao si rtis ng g he e s t o c t the a he wbn ula d sa Univ ule v tions ings o de trs o . itg The yf low o , Mo int bnth o e ot re tin om ly ff c eP om c e p trfo a in 202 e n re w ma l a ornc d k 7. je us e r s Tre ts is c tnd he ha s num nging in Sta be te trhe s b -Fa c y cur il in itra tee te nt rd p o Sa Rla ev tire tion u er’m s e Csi nt re ng d Sit at v his ting o a a s ss m Pro u am tgcrh p a, tms ion. $1 under $5,000 115,206 80,521 34,685 462 1,891 32,332 $25,000 under $30,000 2.24 0.09 0.16 2.5 $30,000 under $40,000 3,107,865 10,462,795 419,234 2,886,187 7,157,374 any and all copyright and other applicable notices contained therein, and you may cite or quote small portions of of the individuals qualifying for the match will contribute to employment-based plans and a sizable number will traditional IRA contributors with incomes qualifying for the Saver’s Match, it results in 1.0 million unique Traditional IRA $1 under $5,000 181,693 14,306 1,488 167,387 2,229 9,127 156,031 181,693 De Thu ce s, mb am erong 2023 a,ll Jta anu x file aryr s, 2024 83,.8 http mill s:ion ha //cri.gd e oin rgce om tow en. s t eha du/ t w wp ould -conte mnt/ ake up the loam ds / e2024/ ligible 01/ for Mo the nth Sa ly-v Tre er’nd s M s-a in tc -S hta (Fi teg -R ur ee tir 1 ement- where the federal government would make a matching contribution to a qualified retirement plan of lower income $5,000 under $10,000 141,281 98,745 42,536 636 4,846 37,053 $30,000 under $40,000 3.86 0.18 0.33 4.4 $40,000 under $50,000 3,290,467 7,582,461 324,132 1,837,436 5,420,892 the report provided that you do so verbatim and with proper citation. Any use beyond the scope of the foregoing c ontribute to Roth IRAs. Tot c aont l Mr aibut king o ras ( Trta hose dition not al I R aA lso Co cont ntrib ribut utioing n to a 401(k) plan). Under the Saver’s Credit, a tax credit for contributing to a qualified retirement plan can be used as an offset against the $5,000 under $10,000 495,077 36,826 2,965 458,251 6,854 52,210 399,186 495,077 Plans-November-2023-to-December-2023.pdf. w bot ortk om ers. The panel) m . atch would be directly added to the individual’s qualified retirement plan after the worker applied for the $10,000 under $15,000 $40 1,4 07 0,0 0 2 u3 nder $50,01 00 02,759 2.33 44,264 0.17 690 0.27 10,62 1.1 8 32,964 $50,000 under $75,000 10,611,319 10,608,024 561,007 2,431,938 7,615,079 requires EBRI’s prior express permission. For permissions, please contact EBRI at permissions@ebri.org. tax liability of those contributing. If the individual does not have any tax liability, the credit cannot be used, since it is $10,000 under $15,000 868,275 81,430 6,423 786,845 12,257 188,614 585,975 868,275 $15,000 under $20,000 154,669 108,103 46,566 873 13,552 32,141 match. This provision is sche $5 d 0ule ,00d 0 u to ndg eo r $int 75o ,00 e0 ffect in 202 5.87 0. 0.33 0.60 6.7 For these individuals to benefit from the match, the mechanics of getting the money to the retirement accounts are Roth IRAs — Under the current framework of the Saver’s Match in SECURE 2.0, Roth accounts cannot receive the Married / Married / Head of $15,000 under $20,000 1,260,731 140,498 13,691 1,120,233 21,008 326,009 773,217 1,260,731 not refundable. However, under the Saver’s Match, any F wior gu kre er 1 qualifying for the match by contributing to a qualified $20,000 under $25,000 189,176 132,221 56,955 1,491 15,577 39,887 Total 21.9 Report Availability: This report is available on the internet at www.ebri.org likely to inv Too talv ls e building an entirely ne 21w ,5 9 in 3fr ,7a 5s 2truct6 ur 8,e 5, 1w 3,hic 338h is c 2,0 o9 m 2p ,5lic 89ated1 a 5,nd 71 8lik ,14 e3 ly to 50 inc ,70 ur 2, 6s0 ignific 5 ant costs. It will Figure 2 match — only accounts with tax-deferred contributions can. However, these individuals can still qualify for the match. Adj usted Gross Income Total Joint Nonjoint Separate Household Single $20,000 under $25,000 1,842,564 277,481 17,498 1,565,083 40,964 428,053 1,096,066 1,842,564 Sinc r etire em im en pt le p m la en ntcing ould this Tro e c tm a eiv la T te ca h p tx he F r ov m ile a isi rts c on h. W w The itill h b In m ec a a o t csu m h w e bst sould a Q nt uia a bl und le if y diir ne eg c rt tf a ly o k r ing, d t eh pe osit t hi Ss a ed v Is e tsu o r'e s th B M er a ie qtua fc e h lif st , ie im 2d 0a 1 p t8 e las t n a he s ins expe tru cc te te dd by $25,000 under $30,000 179,676 125,581 54,095 1,648 16,219 36,229 IRA = individual retirement account also entail buy-in from 401(kD ) p is la tr n a ibu nd tio IR nA o a f d N m oin nis jo tria nttor Fs ile in rs he blp ying No d n ejv oeilop nt F tihe lin p gr oc Ste ass tu for s the plans to receive the A $1 not unhe der r $ v5 e,hic 000le or process w 23ill ,1 ne 98ed to be 1c 6r,e 2a 14 ted to acce 6p ,9 t8 or 4 facilitate th 93 ese governm381 ent matching 6 c,on 510 tributions. $25,000 under $30,000 2,224,137 326,026 20,846 1,898,111 57,818 569,082 1,271,211 2,224,137 num the w b$or e 3r0 k ,of e 0r 0,w 0 a u or s long nk de err s w $4 a 0s t ho ,00he 0w ould pla4 n is not 2q 2ua ,32 lif 0y a for Rot the h a 2m 9 c5 c a ,o t 1c unt 7h b 2 . aThi sed s is 1 on 2 7 a,his 1m 48 t aor jor ic a cl d ha 5a nge ,0t9 a5 afr nd om how the 35 m ,p 07 r aior 4 ny p w ror ovk i8si e 6ron ,9 s 8w ; 0 iould n ad d bit eion expte o cted Source: EBRI estimates using IRS-SOI tabulations and the EBRI Tabl e o Af djus Co tent d for ent Spe sc ific Income Thresholds in SECURE 2.0 money and from plan sponsors in amending their plans to receive dollars from outside the plan. While this provision Thu $5,0s, a 00 uc nc doun er $1 ting 0,00for 0 the nu4m 2,b 2e 0r 7 of individua 29,5ls 00who are c 1ont 2,70 ribut 7 ing to Ro 190 th accounts 1 sep ,44a 8rately is im 11p ,0 or 69 tant because $30,000 under $40,000 5,066,854 1,018,300 110,147 4,048,554 162,222 1,116,803 2,769,529 5,066,854 Total in Income Groupings of Interest t m o or re ec $e w 4iv 0 or ,e 0k 0te 0 he r s b use nde ea ing r d $d 50 it a,ion b 00 le 0a tl fu o us nds 4e 0 8t,he t4hr 7 6oug math t ch, he the 2m 8 5 a m ,t 4c a 9h t6c . h w Thiil s l b w 1ill e 2 2 d p ,9 ir r8 ov e0cide ted im to 5 pa ,or 2 r 5e t7 a tir nt e m inf eo nr2 tm 9p ,a 8 la t0ion o n 1 insn t teahe 8 d7 , of 9 sc 2t 2 ao let he and wim ork pe arc,t on Integrated 401(k) Plan/IRA Database. Married / Head of I dnt oe rs not oduct ion go ................................ into effect until 2027, ................................ creating the system to................................ make this provision w ................................ ork is not going to be.......................... an easy task, but 3 $10,000 under $15,000 64,697 45,219 19,478 303 4,669 14,506 of the additional means that would be needed to deliver and receive the match. $40,000 under $50,000 4,682,103 1,301,029 212,353 3,381,074 144,533 819,326 2,417,215 4,682,103 $50,000 under $75,000 1,165,836 814,836 351,000 18,563 80,468 251,969 t w he hic sy h ha stes m t y for pic b aot llyh bte hose en the ad m wa ini y stth ea rt ing tax r the e fu acnds coua nt re s a dnd one t. he A s su worc kh, ers r nee w c e aiv nd ing uni the que a dpdrit oc iona edur l d eolla s wrill s. ne Ste ad tis to ticb s of e MM ar arr ie rid ed / / Married / Married He / ad ofHead of Adjusted Gross Income Separate Household Single it has the potential to help around 22 million Americans who would be eligible to contribute, plus more who might do so $15,000 under $20,000 70,564 49,319 21,245 398 6,183 14,664 $50,000 under $75,000 10,431,923 5,203,379 1,521,798 5,227,146 276,438 1,198,347 3,752,360 10,430,525 Data ..................................................................................................................................................................... 3 d Inc evo em lop e e (d SOI to ) fa ta cb iliul ta atte ion the s (m public ovem lye a nt v aof ilaa bn le y d fun ata d s f frorm om th te he I nt feedre na ral Re l gov ve enue rnm e Se nt r vtic o et h (e IRS) wor ) k ae rr es’ us re etd ir e to md ee nt te p rm lan ine s. Sinc these e Adj Adj us us tetd ed Gr G os ros s Is nc Inc om $ om 1 e u ender $5,J 0oi 0 J0 oi ntnt Non Sj1 e oi .pa 3 nt % rate SepaH ra ou 5 te .s 5e % ho Hlou d sehold 9 S3 ing .2% le Single Tota To l tal The number of taxpayers who contributed to a Roth IRA are also tabulated in SOI’s “Accumulation and Distribution of onc $20,e 0 0t0 he u nm de art c $h i 25,s 00im 0 plement 72e ,5 d4 . 2 50,702 21,840 572 5,973 15,295 Totals 2,923,663 2,043,432 880,231 34,714 208,040 637,478 num this w be illr s, beg iv a e su n th bste air nt d ia elt a und il oe n ta rtak x sp ing, ec dif eic tes rm frini om ng the how offic mia any l ta w x for orke m rs s c us oe uld d in t be he rem ce.iv ing these additional funds through Potential Mark $e 1t u Size nder ................................ $5,000 684,5 ................................ 02 113,219 ................................ 463,622 7,92................................ 6,308 9,187,651 ............. 3 $1 under $5,000 $5,000 unde 1r 8 9 $,1 90 3 ,2 000 5,7631 ,5 .5 5% 6 76,741 11.4% 314,250 87.1% 5,372,565 5,953,488 I $ndivi 25,00d 0u u anl Re der t $ir 3e 0m ,00 e0 nt Arrange 96,m 53e 1nts (IRA)6 ”7 r ,e 46 p8 ort. For 20 29 18 ,0 6Rot 3 h numbe 885 rs, the same p 8,r7 oc 13ess is used 19 in w ,464hich the Tot als 27,053,357 8,399,275 18,652,684 724,322 4,707,570 13,220,791 27,051,959 Co (Jnc ointlus retuion rns-69 .9% and nonjoint returns-30.1%) the match will provide important information on the scale and impact on the system for both those administering the $5$ ,0 5,00 00 0 u nu dn ed re $ r 1$ 01 ,0 0,0 0 0 00 36 89 3,0 4,2 21 79 6,966 1,3 47 1,7 369 104,21 0,2 046,344793,707 8,000,6 1,1 08 68,50910,07 1,4 3,3 15 1,0 838 $10,000 under $15,000 1.6% 24.0% 74.5% $30,000 under $40,000 222,546 155,544 67,002 2,685 18,483 45,835 distribution of individuals with any Roth contributions by AGI from “Table 2. Taxpayers with Individual Retirement Number Contributing Under Saver’s Match Income Cutoffs ....................................................................................... 6 • Among all tax filers, 83.8 million taxpayers had incomes that would have made them eligible for the Saver’s C a c ac lc ount ulats a ionnd s usi the ng w IR or Sk e dras r ta efc rom eiving 201 the 8 c a on dd clude ition atl d haolla t aprp s. r oxim ately 83.9 million Americans had incomes that fall within $1$ 01 ,0 0,00 00 0 u nu dn ed re $ r 1$ 51 ,5 0,0 0 0 00 6 19 ,4 2,42 43 ,9 383 7,398 1,5 99 2,8 039 115,22 5,3 447,391 9,773,587 7,603,5 4,5 54 10,08911,48 5,4 0,9 23 7,5 167 $15,000 under $20,000 1.9% 29.1% 69.0% Endnotes $40,000 under $50,000 252,659 176,591 76,068 3,252 18,433 54,383 Arrangement (IRA) Plans, by Size of Adjusted Gross Income” (file 18in02IRA) is combined with the distribution of Adj usted Total Making Elective Contributions for Saver's Match Adjuste M da T tc oh ta fr l W om ith t he Rose th C ta ob nula tribtu ions tion.s H fo ow r S eE vC er U, Rsom E 2.e 0 S of avte he r's se M indiv atch iduals did not 5 have wage income, a requirement Conclusion ........................................................................................................................................................... 11 the Saver’s M $1$ a 51 t,c 5 0h ,00 0 0 inc 0 u nu o dnm ed re e $ r 2 lim $ 02 ,$ 0 0it 2 ,0 0 s 0 0 0 , ,0 0w 00 it h un69 d 8 1 e 5 ,r 6 .0 3 ,6 $ 5 2 2m 5 ,5 5 2 ,ill 9 02 0 ion 0 of 6,t 8hose 88 1 2 ,6 2 .6 5 5 % ,8 r 4e 9c 4eiv1 ing 29,1 W 2 72 ,7 - 5 7 2 inc 6 .4 8% ,19o 2 6m ,00 e4 .,6 Fu 16 0,7 r 00 t9 h .1 0e ,% 4 1 r,m 6 77 5 or 4,e 4, 71 21 10 .9 m ,17 8,7 7ill ,4 1ion 4 4,9 81c 3ontributed $50,000 under $75,000 617,507 431,593 185,914 9,832 42,622 133,460 c ontributions by filing status (joint and nonjoint) from “Table 7. Taxpayers with Individual Retirement Arrangement This Issufor e B c rie on f te ribu stim ting ates to th ae q e ua xpe lific etd e d re num tirem be en r tof pla wn or . k From ers w t ho abu would latio an t sle of asttax filer qualify for s w the ith m W a- tc 2 h b (w aa sed ge) on inhis cotm ore, ica l $20,000 under $25,000 1,617,744 209,202 2,186,068 5,597,614 9,610,628 to either an e $2m 0,p 00 loy 0 u m ne de nt r - $b 2a 5s ,$ 0 e 2 0d 5 0 ,r 0e 0t 0ir u en 1 m d ,2 e e0 rnt 5 $, 3 0p 0 1la ,7 0n o 00 r a 6n ,6 1 IR 53 ,A 1 .0 1( % 3 Figure 1 78 3). ,1 4 Thu 3 10.0s, %t1 he ,8 0im 9,2 p4a 5c 6t 7 .of 0% 4,t6 his 32 ,p 72 rov 7 ision 7,8ha 20,s t 13he 0 1 Endnotes ............................................................................................................................................................. 12 For purposes of this study, to ease exposition, “qualified retirement plan” will be used to reference both (1) plans provided (IRA) Plans, by Filing Status and GM ende arrir e”d (/fil e 18 M in0 arr7I ieR d A/) B , ot and h the “all returns M”a d rris ie tr d ib / ution for Head non of joint filing status to Married / Non Married / Head of data. The 6s9 e. 0 e st m im illi ato en s h ara ed r in ough com ap es pr elig oximibl ation e fs o r d th ue e Sa to da vter’s a lim M ita attc ions h. and the necessary assumptions that must be $25,000 under $30,000 1,655,406 223,247 2,197,345 4,908,413 8,984,411 $25,000 under $30,$ 03 00 0,000 un 1d ,2 e6 r 8 $,4 90 3,7 000 6,2274 ,7 .0 8% 6 189,702 37.6% 1,867,18368.4% 4,170,900 7,496,723 potential to help a significant number of low-income Americans save for retirement. Totals 1,462,451 1,022,149 440,302 18,210 106,905 315,187 through an employer that meet the requirements of the Internal Revenue Code and ERISA for tax preferences and (2) Adjp us rod teuc d G er os the s Itnc op om pa enel of Figur Total e 6. Using Jointthe int Spo erus pola es tC ion on ta riss bu utm e ptN ion, onjoi the nt totS ae l pa Rorta ht eIRAH c ou ont serho ibu ld tors w Siho ngle would ha Tovte a l Adjusted Gross Income Total Joint Joint Separate Household Single Total used as a result. However, they should provide solid ballpark figures on the scale of those who would qualify for the $30,000 under $40,000 3,347,911 487,346 3,355,102 8,320,222 15,510,581 $30,000 under $40,$ 04 00 0,000 un 3d ,1 e0 r 7 $,5 80 6,5 000 10,462 4,.7 39 % 5 230,572 94.2% 2,886,18771.5% 3,936,556 10,161,187 (Jo int returns — 69.9%; nonjoint returns — 30.1%) individual retirement accounts (IRAs) that have the same tax preferences for the owners of these accounts as those of $1 under $5,000 181,693 14,306 1,488 167,387 2,229 9,127 156,031 183,181 had • inc $ 1om uW nd e he es r n e q $5 u,a 0 xa lif 00m ying ining fort he the 1 num 1 Sa 5,v 2b 0 ee 6 r’rs w Mho atcc h w ont 80a r ,ibu 5 s 22.3 1te dm till o ion a 3 q4ua (,Fi 68 lif g5ur iee d 6 p la bn ot 462 , tio t m w a ps found anel). 1 ,8t 9ha 1 t 18.9 mi 32,3 lli 3on 2 work 1e 1r5s ,206 match. The study will start by describing the choice of the data used, then go through the estimates for the potential $4$ 04 ,0 0,00 00 0 u nu dn ed re $ r 5$ 05 ,$ 0 05 ,0 0 0 0 0 ,0 000 un 3d ,3 2 e,9 r 1 0 8 $,6 7 4,5 6 3 ,7 6 09 00 7,582 3 5 ,7 4 .3 7 6% ,1 502 22 ,1 23 .9 9% ,971 7,837,436 6,7 31 1.3 8,% 463 12,05 1,7 1,2 37 1,1 903 Figures participants in employer plans — through either a traditional manner or Roth tax treatment. “Qualified retirement plans” has $5,000 under $10,000 495,077 36,826 2,965 458,251 6,854 52,210 399,186 498,042 $5,000 under $10,000 141,281 98,745 42,536 636 4,846 37,053 141,281 contributed to an employment-based retirement plan and had incomes that would qualify for the Saver’s number of wor $5 k0 e,r 0s w 00 u ho nde croul $75 d, 0 q0ua 0 lify for 8,5 t 7he 0,8 2 m 0atch — t6 h8ose 1,68 w 2 ith incom 2,95 e5 s w ,05it 9hin the 9, 2 lim 53it ,1s b 16y tax fi 21lin ,46 g0 ,st 67 a7 tus. Next, $50,000 under $75,000 8,913,508 10,608,024 316,152 9,229,660 Adjusted Total With Traditional IRA Contributions for SECURE 2.0 Saver's Match Again, some individuals could have contributed to both an employment-based plan and a Roth IRA, so it is necessary to generally referred to only employer plans. $10,000 under $15,000 868,275 81,430 6,423 786,845 12,257 188,614 585,975 874,698 $10,000 under $15,000 147,023 102,759 44,264 690 10,611 32,964 147,023 Match. In addition, 1.0 million unique individuals contributed to a traditional individual retirement account Fi gure 1, Total Tax Filers With Incomes Qualifying for the Fi g Sa ur ve e r8 's Match, 2018 .......................................................... 5 the number of workers wit Shi ou n th rce:e C inc alcom ulate ed lim froim ts th w eho IRS his St O or I T icaa xlly S tc aont tistir cibut s: Ae dd ju son ted a G p ro re ss -t Ia nx cob m ae si s to a qualified retirement 4 c $he 15,c 0k 0 0 fo urn t dhe er $num 20,00 b0 er c1 ont ,26r0ib ,7ut 31ing t1 o 4b 0,ot 49 h t 8 ypes of a 1c 3c ,ou 691 nts. Using 1,1 t2he 0,2 I 3nt 3 egra 2t1e ,0 d0 40 8 1(k)3 P 26 la ,0 n0 /I 9RA D7 a7 ta 3,b 2a 1se 7 ag1 a,i2 n, 7 4it ,4 22 $15,000 under $20,000 154,669 108,103 46,566 873 13,552 32,141 154,669 2 (IRA), and 2.0 million unique individuals contribut Sum ed m ta o ra y Roth IRA. This is a total of 21.9 million The choice To otf athe ls 69.9 percent and 30.2 1 2p ,4e9rc 9,e 7nt 06split is 2 b,a 5s 5e 4d ,1 o 00 n the o1 v9 e,r3a5ll9 ,nu 11m 2 bers 6 o4 f, 0 IR 13 A ,8 c7 o5ntribution 108,4s2 , 6b ,7 ut 93the plan (emp To loy tam lsent-based p ala nd ns M a and ritalt S r 1a 9 ta d ,8 tit u 9io s 5 ,(na 9 A4 lll 1 R indiv eturn idua s) 18 l r ine 1t2 ir m es m .x 1 el,s nt 0.1 8a ,c 7c 9ount 5 s ( 13,I6R 0A 2,s3)5 ) 7will3 b 4,e 4 4 d5e ,8 te 1r 6mine 68d ,9 . 6Sinc 2,90e 9 the Married / Married / Head of Figure 2, Distribution of Nonjoint Filers by Nonjoint Filing Status ............................................................................... 6 i$ s d 20,e 0t0 e0r m unine derd $ t 2ha 5,0 t0 13 0 .31 p ,8e 4r2c,e 5nt 64 of Rot 277h ,4I 8R 1A contribu 1t7or ,4s 98 were also 1,40 561( 5,0 k8)3 parti4 c0 ipa ,96n 4ts in t4 he 28 ,sa 05m 3e ye 1a ,0 r. 96 W ,0he 66n th 1i,s 8 60,062 $20,000 under $25,000 189,176 132,221 56,955 1,491 15,577 39,887 189,176 individuals who contributed to a qualified retirement plan and would have been eligible for the (in millions) percentage of overall taxpayers with incomes below $50,000 who are joint filers is much lower. However, the distribution by SOI column location N Z AL AX match as currently written cannot be directed to a Roth account, the number of To wtor alk E elr ig s w ible ho baha sev d e o n his 20 tor 18i c Aa G lly Is .only Adjusted Gross Income Total Joint Nonjoint Separate Household Single Total $25,000 under $30,000 2,224,137 326,026 20,846 1,898,111 57,818 569,082 1,271,211 2,244,983 13.3 p $2 e5 r,c0e 0nt 0 uis n dm erult $3iplie 0,00d 0 by t1 he 79 ,2.3 676 million Ro 12t5 h, 5I8 R 1A contribut 54,0 o9r5 s with in 1c ,om 648es quali1 fy 6,ing 219for the3 Sa 6,2v 2e 9r’s Mat1c7h, 9,6it 7 6 Saver’s Match based on the historical data examined. Fi filig ng ur e sta 3, tus Ta dx File oes no rs Wi t ma th Ea tter u rnin ntil gthe s Qua inclif ome ying s re for ac h the the Sa sin ve grle 's Ma -filer tc inc h, o20 me 1 8 c uto ................................ ff of $35,500, as all o ................................ f these individuals would .. 6 contributed to such an account is enumerated separately to see the number who would need a new or additional $1 under $5,000 23,198 16,214 6,984 93 381 6,510 23,198 Potential Number of Individuals Eligible for the Saver's Match $30,000 under $40,000 5,066,854 1,018,300 110,147 4,048,554 89,222 1,116,803 1,523,241 3,857,713 result$s in 30,02 0.0 mi 0 unde lli r on $40u ,0 nique 00 Rot 42h 2, 3 IR 20 A contribu 2t 9or 5,s ( 172those not 12 7a,ls 14 o 8contribut 2,80 ing 2 to a 43 05 1( ,0k 7) 4 plan). 47,839 380,887 qualify regaA rd dj le us sst eo d f fta or x S fili pe ng ci fs ic ta Itus ncom . Ae b o Th ve r e$50, shol000, ds in the SE C joi Unt/ REno 2.njo 0 int filing status breakdown is much closer to overall tax- v $e 5,hic 000 le u t no d Se r ore u $ c rc 1 ee 0 iv :, 0 e IR 0 0 tS he In d m iva idtu ch a4 l. 2 In , 2 fo 0r7 mation Ret2 u9 rn ,5 Fo 00rm W-2 St1 a2 ti,s 7t0 ic 7s (2018) 18i190 nallw2.xls-Table1 1 ,4 .F 48 Taxpayers 1 w1 it,h 0 6 W 9age 42,207 All Returns 83.8 Fi $4g 0ur ,0e 0 $0 44, 0 u ,n 0E d 0st e 0r i um $ n5 d a 0 e t,e r0 0 s of $0 50,0Thos 0 40 ,682e , 1W 0 43 0ho 8,4C 7 16 ont ,301r,ibut 029ed 2 8t5 o ,4a 9n Em 6 212,3p 5l3 oy 1e 2r 2 ,P 98 la 0n a 3,3nd 81,0 W 74 ould Be Eligib 29,8 le 0 1for 819 ,t3 he 26 Saver's Mat3 c1 h5 .......... ,2 29 ,3 732, 77 0 8 While these numbers are solid ballpark figures, there are a few caveats that should be mentioned. These estimates filer breakdown. Therefore, the impact of this assumption is likely limited. Income, by Size of Adjusted Gross Income and Return and Earner Type, Tax Year 2018 $10,000 under $15,000 64,697 45,219 19,478 303 4,669 14,506 64,697 Tot $50a ,0l b 00y u I nnc deo r m $7e 5W ,— 00 -2 0Tot 1a 0l,ing 431 ,t9 he 23 num 4,3 b 7e 0r,s 8 3c8ontribut1 ing ,278 to ,3e 10 ach of the 5,2 2 thr 76 ,1 e 94 .e 0 6 account types r1 e5su 5,lt 78 s in 5 21.9 million 5,804,934 $50,000 under $75,000 1,165,836 Married 68 / 4,462 Marri3 e5 d 1/, 000 Head of 10,461 694,923 could be a lower bound, because they only focus on those contributing to an employer plan who had their wage income https://www.irs.gov/statistics/soi-tax-stats-individual-information-return-form-w2-statistics Figure 5, Estimates of Those Who Contributed to a Traditional Individual Retirement Account (IRA) and Would Be 3 $15,000 under $20,000 70,564 49,319 21,245 398 6,183 14,664 70,564 indiv In this idua dla s w ta Adj bho a us se tw e , ould d the G r401( os ha s v Ik nc e) q om pua lan e lifp ie ad rticip for a J tnt he ois nt Sa frov m erth ’s eM EB a Ste R cpa h I/ ICI us rating e401( the k) H se Dat ou his sa eb t ho o ars lic d e aal d re acto aS m . iL b ng ookin ine led w gith at the thes To ae ctc anum o lunt boew rs b ners y of reported on Form W-2, whereas some workers have their earnings reported on other forms, such as Form 1099. The Data Eligible for the Saver's Match .................................................................................................................... 8 $20,000 under $25,000 72,542 50,702 21,840 572 5,973 15,295 72,542 Totthe als T o EB taR ls I IRA Dat $1 u an bdaesre $ .2 5For 7 ,0 ,0 05 0m 3,o 2 3re ,5 9 7 2 info 3,6 76 ,rma 5 3666 ,tion 7 83 45 ,5a 1 0b ,2 9 o1ut 3,0 the 1 5,8 6 6 EB 31 ,7 R 12 3 I/ 2 ,2 ICI 19 401(k) Dat 463 8a ,,6 b 62 0 a2 1 se, 2 3 s0 e,e 3 5 7 H 1 1 ,3 o 98 ld 2,6 0 e ,3 n, 3 3 2 0 , 6 8 S 6a 5ra ,0h, 0 28 5 9 S 8,t ,1 4 e8 5 4 v7 ,6 e 8 ,n 6 05 4Ba 1 ,92 s 2s 7 ,3 , 1a8nd 1 ,1 83 , 9 Cra 830,ig 74 3 income groupings shows that 12.4 million (or 57 percent) of these individuals had incomes below $40,000 (Figure 7). new rules on cove Prot ing ent pia ar l tN -tum ime be erm of p loy Inde iv eis du for al se W mho ploy Wm ou elnt d -H ba av sed e B e pe la n ns A bl weould to U not se t he ha v Se a v geone r's M int ato ch eby ffe ct during the $25,000 under $30,000 96,531 67,468 29,063 885 8,713 19,464 96,531 Finding the most up-to-date and appropriate data to estimate these numbers presented certain challenges. Since the Copeland, “401( $5k ,0 ) 0P 0l a un ndAs ers $ e1 t0 All ,00 o0 cation, Ac 83 c0 o,u 2nt 79Balances,1 3 a7 nd ,3 6L9oan Activ 1,it 0y 4 6in ,34 20 4 20,” E8 B,R 00 I 0Is ,1s1ue 8 Brief1 , 0no ,01 . 4 576 ,110 (Employee The number below any of the phase-out incom Pere c etn htrae gsh e o ol f d Rs (l othe Iss RA t C ho an n $20,0 tribu To totra s0 l A 0) W ls ito w h P a Es a m r3 tp ic .4 mi lo ipya ete in lli C gon o in n , t4 r i0 a b1 nd u(tkio )a n P not sl a B na he se rd 4. 1 o 3 n 6 m . 32 % 01 ill8ion AGIs Figure 6, Estimates of Those Who Contributed to a Roth Individual Retirement Account (IRA) and Could Be Eligible for Contributing to an Employer Plan or an Individual Retirement Account (IRA) his torical timeframe of the data. State-run auto-IRA plans, which are almost exclusively Roth IRAs, would only have Number Contributing Under Saver’s Match Income Cutoffs $30,000 under $40,000 222,546 155,544 67,002 1,477 18,483 25,209 200,712 Current Population Survey (CPS) from the U.S. Census Bureau has very detailed data on worker characteristics and Be nefit Researc $1 h 0Ins ,000 tit uut nd ee , rNo $1v 5e ,0 mb 00er 29,1 ,20 1422 3,2)9 fo 8 r the late 17 s8 t ,c 4ro 29ss-sectional 1,65 9r,e 7s 6ult 7 s and7 b ,5 a9c8 k,g 9ro 72und on 10 the ,58 0 d,a 4ta 66base. For Total With Roth IRA Contributions Based on 2018 AGIs No 401(k) Plan 2,009,826 were in the the inc Sa om vee r's b s M ea tw tce he ................................ n $20,000 and $30,00................................ 0, where only the single ................................ and married filing spe ................................ rate individuals would .... 8 been in their infancy during the study timeframe, while the number of these accounts is now on track to reach one W $4hil 0,0 e0 0 69 u.0 mi nder $lli 5o 0,n is t 000 he num 252 b,e 6r 5 9 of W-2 e1 a7r6 ne ,5r 9s 1 who had 7 6inc ,06om 8 es that would qualify t 1he 8,4 m 33 for receiving the Saver 1’9 s5 ,024 recently adde$ d1 q 5,ue 00st 0 ions unde ra $b 2out 0,00 r0etirem 1e ,2 nt 38 p ,7 la 7n 8 contribut 16ions 3,90, 0it seem 1e ,9 d6 4 lik ,2e 2 0 a natur6a ,l6 5 sour 6,77c 6e, give 1n th 0,02a 3,t6 it 74 is updated more information about the EBRI IRA Database, see Copeland, Craig, “EBRI IRA Database: IRA Balances, Contributions, Source: Individual Information Return Form W-2 Statistics (2018) file 18inallw2.xls Tables 3.B/3.E b e impacted by the phasing out of the match. Employer Plan Contributions 18.9 million (though not all, but many, would be within the income thresholds). Furthermore, those not filing taxes are not $50,000 under $75,000 617,507 362,538 185,914 5,541 368,079 Figure 7, Number of Those Who Contributed Who Would Qualify for the Saver's Match, by Income ............................. 9 Match, the earner must contribute to a qualified retirement plan to receive the match. The earner could contribute to annually. How $e 2v 0e ,0r0 , 0w uhe ndn co er $2m 5,p 00 a0 ring the 1,4 C 43 P,S 38d 3ata with o 19ff 1ic ,8i1 a1 l Interna 2,l 1Re 17,v 4e 2nue 8 Ser5 v,i9 c7 e3 ,(2 I1 RS) 7 data 9 ,t7o 25 b,e 83 nc 9hmark the http R so :/ll/o wv w ew rs .i,r sW .githd ov/sra taw tisatlis c,s /a sn od i- tA ax s-ssett atA sll -io nc da ivtion, idual -201 infor7 mUp atio dn a-tre et,u ” rEB n-fo RrI mIs -ws2 ue -st a Bri tise tf ic , sno. 513 (Employee Benefit Research Institute, Source: Accumulation and Distribution of Individual Retirement Arrangements (IRA) (2018) files 18in02IRA: Size of Adjusted counted, nor is tTra he di poss tion ibilit al IR yA of s*more individuals contributing given the additional incentive from the match to 1.0 an employment-based retirement plan or an IRA. Data on those contributing to employment-based plans and IRAs $25,000 under $30,000 1,541,048 236,335 2,193,886 5,544,525 9,515,794 r S e esu pte ltm s, t be he r 1 C 7P , S 20d 20 at)a . Als did onot , se em Cop atch t elahe nd, tCra ax d iga , t“H a b ae vin cagus Bot e of h at he 401( lim k)it a Pt la ion n a s o ndf atn he IR aA: dj u Hst ow ed Mu -grcoss h Do -inc eso Th me is aCha nd n ta gx e- fil the ing - Gross Income and 18in07IRA: Filing Status and Gender of Taxpayer Figure 8, Summary ................................................................................................................................................ 9 contribute. In contrast, one factor that could reduce the number being eligible to qualify for the match is wage and Totals 1,462,451 953,094 3,918 69,824 106,718 1,133,554 Using the numbe Rrot s f h rom IRA s “*Individual Information Return Form W-2 Statistics (2018),” in “Table 1.F- Taxpayers with 2.0 come from different sources, and as such, they are taken in turn. $30,000 under $40,000 3,170,784 268,040 3,652,092 4,576,122 11,667,038 st Re atire tusme vant ria As ble se st in C Picture PS. ?Ther ,” EBe Rfor I Is es , ue de Bri spit ee f, tno he . 511 limit( aEmp tions lo y of eet he Be n pe ublic fit Rly es e aa vrc ailh ab Ins letit dut ate a, fr Aug omus the t 20, IRS, 2020) the fo IRS’ r an s e Sxa tam tist ple ics https://www.irs.gov/statistics/soi-tax-stats-accumulation-and-distribution-of-individual-retirement-arrangements income growth, as 2027 and the study year (2018) are several years apart, which included a high inflation period Wage Income, by Size of Adjusted Gross Inc Po em rce en a tand ge Re of T tur rad n a itiond nal E IR aA rne Co r nTy trib pue t, orTa s A x Y lsoe P aa r r20 tici1 pa 8t” ( ingfil in e 418 01in (ka ) llw2 Plan), and 10 t.he 8% $40,000 under $50,000 3,192,472 2,345,850 5,538,322 of research using the Integrated Database. For this Saver’s Match analysis, using data closest to 2018, 27.1 million 401(k) of a In nc d o em stie m ( aSOI tes ) fr otm ab tul hea E tion BRs I Ia ntre eg rus ate ed d ,4 0 g1 iv (ke)n th Plan e/ir IR A de D ta atil ab oa n ta se. x specifics and the use of official tax forms in them. p Eus mp hin loy gm som ent-eB c aon sed tr ibu Rettir or es ma eb nt ov P ela tns he — inc E om lecet iv ce ut c oon ffst. ribut Nevie ons rtheto le ss em , t phe loy se me num nt-b ba esed rs a r pe la a ns g ood are rst ep aor rting ted p on oint W for -2 for ms, Total With Traditional IRA Contributions Based on 2018 AGIs No 401(k) Plan 1,011,131 assumed distribu To tion o tal f nonjoint filers, the number of earners with incomes below the threshold is shown in the top $50,000 under $75,000 7,199,489 32 81 4.,9 158 7,583,646 p Tr laan dip tiona articil pIaRA nts s w — e re The incnum luded b,e r a lon of g ta w xpa ith y18. ers w 7 mil ho lio cn on IR trA ibo ut w ene d rs to , a o f tr w aho ditm ion 5. a4 l Imil RAli o an rew te are bul Ra otth edIR in a A o w diff neers re . nt report: unde so the rst W and -2 t ing ab ul the at io prns ov is arion’ e us s erd e afor ch , da end term the ini yng show the tnum hat tbhe er b wulk ho of cont the ribu indiv tedidua to als n q eua mp lif loy ying mefor nt- b the ased m artecth ire w m ille nt plan panel of Figure 3. Again, the number of earners with incomes below the Saver’s Match cutoffs is generated by “Accumulation and Distribution of Individual Retirement Arrangements (IRA) (2018).” From “Table 2. Taxpayers with 4 An individual could also contribute to both a Traditional IRA and a Roth IRA in the same year. However, of those Sou t cha ront cet: rha A ibut cd cu e q m ua tuo la lif e tiy o m ing np aloy ninc d m Do ie sm nt trie b -s f b uta io or sed n o the f p In la d Sa ns ivid v u e aa nd rl’ sR M e at a isi re tz c m a he b . n le Fi t A rnum s rrta , ntg he bee m rd ew is nill ttsr ibut (cIont RAion o )r (ibu 201te f e 8) tm fio le pRot slo 1y 8h I e inr0 p R 2la IA Rs n p A.: S air zte ic o ipa f Atdio jun b sted y G fil ring oss status Totals 20,444,033 1,289,103 15,827,367 46,276,038 83,836,540 interpolation assuming equal distribution of earners in each income grouping — with the result being 69.0 million Potential Market Size *Excludes those also with a 401(k) plan. Individual Retirement Arrangement (IRA) Plans, by Size of Adjusted Gross Income” (file 18in02IRA) of these c ontributing to a Roth IRA in the EBRI IRA Database, only 2.7 percent also contributed to a Traditional IRA. Of those EBRI Issue Brief is registered in the U.S. Patent and Trademark Office. ISSN: 0887 –137X/90 0887 –137X/90 $ .50+.50 Income and 18in07IRA: Filing Status and Gender of Taxpayer (joint and nonjoint) from “Table 3.E. Taxpayers with Wage Income, by Size of Adjusted Gross Income, Presence of (Figure 3 bottom panel). Total Eligible based on 2018 AGIs. Source: EBRI estimates using IRS-SOI tabulations and the EBRI Integrated 401(k) Plan/IRA t abulations, the distribution of taxpayers with any traditional contributions by AGI is combined with the distribution of The most recent SOI tabulations available on all tax filers are from 2021, but the most recent tabulations using W-2 contributing to © a2 0 T2 ra 4d , iti Eo mp nall oIR yee B A, oenef nly 5. it 1 Resea perce rch nt a Ins lso t it cute ontri — bE ute duca d to tio an Ra on th d Resea IRA. Furthe rch Fund. rmore All , 98. rig 2 hts perc reserv ent oed. f tho se https://www.irs.gov/statistics/soi-tax-stats-accumulation-and-distribution-of-individual-retirement-arrangements Employer-Sponsored Retirement Plan, and Return and Earner Type, Tax Year 2018” and the same distribution of the Database. for cont mrs ibut areion from s by 20 fil1 ing 8. Sinc status e t he (joint W- 2 r and etnonj iremoin entt )c ont from ribut “Ta ion bled 7. Ta ata axpa re cy rit er ic s w al tit o h I this ndiv esidua tima l Re tion, tire the me 20 nt 18 Ar rd aa nge ta fr mo em nt all Source: IRS SOI Tax Stats Size of Adjusted Gross Income and Marital Status (All Returns) 18in12ms.xls contributing to either a Traditional or Roth IRA only contributed to that IRA. Thus, virtually all of those contributing to an IRA and estimates from the EBRI Integrated 401(k) Plan/IRA Database. nonjoint filers as used for the potential size of the market is applied to the share with elective contributions by AGI from (IRA) Plans, by Filing Status and Gender” (file 18in07IRA) and the “all returns” distribution for nonjoint filing status to tax filers are used along with the 2018 tabulations of those receiving W-2s. The first step is determining those tax filers https://www.irs.gov/statistics/soi-tax-stats-individual-statistical-tables-by-size-of-adjusted-gross-income contribute to only one account, so no adjustment is made since the amount would not have a material impact on the final “Table 3.B Taxpayers with Wage Income, by Size of Adjusted Gross Income, Presence of Retirement Plan Indicator, and A research report from the EBRI Education and Research Fund © 2024 Employee Benefit Research Institute e e e e e e e e e e e eb b b b b b b b b b b br r r r r r r r r r r ri. i. i. i. i. i. i. i. i. i. i. i.o o o o o o o o o o o or r r r r r r r r r r rg g g g g g g g g g g g IIIIIIIIIIIIs s s s s s s s s s s ss s s s s s s s s s s su u u u u u u u u u u ue e e e e e e e e e e e B B B B B B B B B B B Br r r r r r r r r r r rief ief ief ief ief ief ief ief ief ief ief ief • • • • • • • • • • • • Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Febr r r r r r r r r r r ru u u u u u u u u u u ua a a a a a a a a a a ar r r r r r r r r r r ry y y y y y y y y y y y 2 2 2 2 2 2 2 2 2 2 2 29 9 9 9 9 9 9 9 9 9 9 9,,,,,,,,,,,, 2 2 2 2 2 2 2 2 2 2 2 20 0 0 0 0 0 0 0 0 0 0 02 2 2 2 2 2 2 2 2 2 2 24 4 4 4 4 4 4 4 4 4 4 4 • • • • • • • • • • • • N N N N N N N N N N N No o o o o o o o o o o o............ 602 602 602 602 602 602 602 602 602 602 602 602 12 10 13 11 4 6 2 8 7 9 5 3