IRS Provides Guidance on Employer-Matching Contributions for Student Loan Repayments

The U.S. Internal Revenue Service (IRS) issued guidance on Monday detailing how employers can contribute to the retirement accounts of employees who make student debt payments. Secure Act 2.0 is legislation that was passed in 2022 which assisted employees with student debts to save up for retirement. An employee paying off student loans may not be able to contribute to their retirement account, while also missing out on matching contributions offered by their employers toward retirement savings. Section 110 of the act seeks to resolve this issue by allowing employers to make matching contributions to their employees’ 401(k), 403(b), governmental 457(b), or SIMPLE IRA plans if the worker makes student loan payments....