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Can student loan payments qualify for a SIMPLE IRA match?

Yes. Under the SECURE 2.0 Act, if your employer has adopted the new rule, your student loan payments can count toward employer matching contributions in your SIMPLE IRA.

What does this mean?

Before SECURE 2.0, you could only receive a match if you contributed directly to your SIMPLE IRA from your paycheck. Now, eligible student loan payments can be treated the same as retirement contributions for matching purposes. This allows you to keep paying down loans while still building retirement savings.

How does it work?

1. You make a qualified student loan payment.

2. Your employer matches it, as if you contributed that amount to your SIMPLE IRA.

3. The match is deposited directly into your IRA account.

Example

• Salary: $50,000

• $0 contributed directly to SIMPLE IRA

• $3,000 paid toward student loans

If your employer matches up to 3% of pay:

• Before SECURE 2.0: No match, since you didn’t contribute to the IRA.

• With SECURE 2.0: Your $3,000 loan payments qualify. Your employer deposits $1,500 (3% of your salary) into your SIMPLE IRA.