Taking money out of an individual retirement account could reduce the federal retirement match you receive for saving in 2027. The new Saver’s Match offers eligible workers up to $1,000 annually, but certain retirement account withdrawals can reduce the contributions that qualify for matching funds.
The detail deserves attention because the calculation looks beyond the money you contribute during the year. Under IRS guidance, certain withdrawals during a testing period that includes the preceding two years can reduce the amount of your contributions eligible for the match. A withdrawal in 2026 could therefore affect a match tied to 2027 contributions.
