Employees paying student loan debt may benefit significantly from a provision of the new SECURE 2.0 law. Beginning after 2023, employers will be allowed to make matching contributions to 401(k) accounts (and certain other retirement plans) with respect to “qualified student loan payments.” This is true even for taxpayers who aren’t contributing to their own accounts. The purpose of the provision is to allow employees who can’t afford to save for retirement while they’re paying off their student loan debt to do both simultaneously. For example, the employer of an employee who pays $1,200 towards his or her student debt could contribute $1,200 to the employee’s 401(k) account. Contact Cg with any questions. © 2022