For Freelancers, New Federal Help in Saving for Retirement
“Much of the Secure 2.0 Act, the retirement law signed by President Biden in late December, focuses on enhancing workplace savings options, but some provisions can also benefit nontraditional workers. Notably, the law introduced a ‘saver’s match,’ a new incentive to help low- and moderate-income workers build a nest egg by providing a direct government contribution to their retirement account. (The option will eventually replace the so-called Saver’s Credit.) Under the new program, the federal government will deposit a 50 percent match on up to $2,000 of a worker’s contribution to a workplace or individual retirement account — a maximum of $1,000 per person. Eligibility is based on income, and the match is reduced over certain limits. Single filers can earn up to $35,500, and joint filers up to $71,000, and qualify for at least a partial match.”