SECURE 2.0 Student Loan Matching: What Employers Need to Know
SECURE 2.0 opened a second student-loan benefit pathway: retirement plan matching based on qualified student-loan payments. Relief IQ helps employers understand where this fits inside a broader workforce student-loan strategy.
- SECURE 2.0 Section 110 allows certain retirement plans to make matching contributions based on employees' qualified student-loan payments.
- IRS guidance applies to 401(k), 403(b), SIMPLE IRA, and governmental 457(b) plans.
- The provision applies to contributions for plan years beginning after December 31, 2023.
- This is different from Section 127 repayment assistance.
- Employers need retirement plan, payroll, benefits, and legal review before implementation.
What is the SECURE 2.0 student loan match?
The SECURE 2.0 student loan match allows employers with certain retirement plans to treat qualified student loan payments as a basis for employer retirement plan matching contributions. This helps employees who are paying student loans and may not be able to contribute enough to receive a normal retirement match.
How it differs from Section 127
Section 127 helps with educational assistance and qualified student loan payments, can exclude qualifying benefits from employee gross income up to the annual limit, and requires a written educational assistance program. The SECURE 2.0 QSLP match helps employees receive retirement matching contributions based on student loan payments, operates through a retirement plan, and requires retirement plan administration and plan design review. These can be complementary, but they are not the same tool.
Why employers should consider both
- Education and repayment guidance.
- Section 127 repayment assistance.
- SECURE 2.0 student-loan match.
- Borrower Defense evidence organization.
- Financial wellness education.
- Professional consultation routing.
Implementation questions employers should ask
- Which plan type do we have?
- Does our retirement plan provider support QSLP matching?
- What employee certification is required?
- How often will matches be calculated?
- How will payroll and benefits data be reconciled?
- What notices or plan amendments are required?
- How will this coordinate with any Section 127 program?
Authority Sources
Built around official IRS, Department of Education, Federal Student Aid, and Federal Reserve guidance.
Frequently Asked Questions
Related Resources
Are Employer Student Loan Payments Tax Deductible? Section 127, 162, and 179 Explained
Read moreStudent Loan Debt and Employee Retention: The Business Case for Relief IQ
Read moreSection 127 Student Loan Repayment: How Tax-Free Employer Education Assistance Works
Read moreReady to Build a Compliant Student-Loan Support Program?
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