SECURE Act 2.0: Student Loan Matching

This is our sixth vlog about the changes to retirement plans under the SECURE Act 2.0 which became law in December 2022. You can find all of the other vlogs about other changes on our website. 

Today, we will talk about the student loan matching program. This takes effect in 2024. Your employer may offer you a better chance of reducing your student loan balance while saving for retirement. For young employees, deciding between paying your student loans and saving for retirement can be difficult.

This new change allows employers to make a matching contribution to a qualified retirement plan for the employee based on the amount of an employee’s student debt repayments. The purpose is to assist employees who may decide against making retirement plan contributions, thereby missing out on the employer matching contributions, due to needing to prioritize their student loan debt payments. Instead of missing out on their employer matching contributions because of not making contributions, the employer can still provide a matching contribution to match whatever they are paying to their student loans. 

This change establishes the provision for employers to view the student loan payments as equivalent to retirement plan contributions (elective deferrals) for the purposes of providing a match. The goal is so that the retirement account funds can still accumulate while the student loan balances are being reduced. It also allows the employee to still be able to prioritize retirement savings 

We encourage you to check with your employer to find out if they have a matching program for their retirement plan and if they plan to offer to match student loan payments as well. If they do match, ask what documentation they require for your loan payments to be matched by them once the program becomes available – either in 2024 or later

Adrianna Environmental B&W

Adrianna Rocha

Client Relations Representative

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.