Do withdrawals reduce my Saver's Match?
Yes, generally. Distributions you receive from a retirement plan or IRA during the testing period reduce the contributions counted for the matchNotice 2026-48, Q&A C-3. The testing period is the tax year, the two prior tax years, and the period after the tax year up to your return due date including extensionsNotice 2026-48, Q&A C-3. A joint-filing spouse’s distributions also count if you filed jointly for both yearsNotice 2026-48, Q&A C-3.
Not counted: plan loans treated as distributions, certain corrective distributions of excess contributions, contributions returned before the return due date, and rollovers or trustee-to-trustee transfersNotice 2026-48, Q&A C-3. Distributions from an inherited IRA by a non-spouse beneficiary don’t countNotice 2026-48, fn. 22.
Example: $2,000 contributed to a 401(k) in 2027, with a $500 IRA withdrawal in 2027 and $900 in 2026 (not rolled over): the match is based on $600Notice 2026-48, Q&A C-3.
Withdrawing the match early can also trigger the 10% early-distribution tax and a Saver’s Match recovery taxNotice 2026-48, Q&A A-2.
Do rollovers reduce the Saver's Match?
No. Rollovers and trustee-to-trustee transfers are excluded (Notice 2026-48 Q&A C-3).