IRS Issues Guidance on Matching Contributions Related to Student Loan Payments

Thursday, 29 August 2024, 07:43

IRS issues new guidance on matching contributions to retirement plans for employees making student loan payments. This guidance impacts 401(k) plans and others. Employers can now offer matching contributions based on student loan payments, following the SECURE 2.0 Act.
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IRS Issues Guidance on Matching Contributions Related to Student Loan Payments

Understanding IRS Guidance on Matching Contributions

The IRS has released guidance that allows employers to match contributions to retirement plans for employees making student loan payments. This is a significant change stemming from Section 110 of the SECURE 2.0 Act. Employers managing 401(k), 403(b), governmental 457(b), or SIMPLE IRA plans can now enhance their benefits structure.

Implications for Employers and Employees

This updated guidance promotes financial wellness by helping employees save for retirement while repaying their student loans. Employers have an opportunity to attract talent by offering competitive plans.

  • Increased Retirement Savings
  • Employee Satisfaction
  • Attracting Top Talent
  1. Review current employee loan repayment programs.
  2. Adjust matching contribution policies accordingly.
  3. Communicate new policies to employees.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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