WealthRabbit Support

Can we match an employee’s student loan payments instead of retirement contributions?

Yes. Under SECURE 2.0, starting in 2024, employers can treat qualified student loan payments as if they were elective deferrals (contributions) and provide a matching contribution to the employee’s retirement account (like a 401(k), SIMPLE IRA, or 403(b)).

• The employee does not have to make a retirement plan contribution to get the match.

• Documentation or proof of student loan payments is required for compliance.

• Matching contributions are made only to the retirement account, not toward the loan itself.