Student loan borrowers who are lucky enough to have access to a 401(k)-type plan, but are too stretched to save in it, may soon be helped by a new workplace benefit: Paying off their student loans can generate retirement savings contributions from their employer.
Starting this year, workers with student loans can receive employer matching contributions in workplace plans, even if they’re not able to save anything on their own.
The loan payments count instead.
The new feature was made possible by legislation known as Secure 2.0, which included a package of retirement-related provisions intended to boost savings.
“Employers can distinguish themselves in attracting and retaining workers by offering such benefits,” said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, a nonprofit, particularly those “who are struggling with their finances and have student loan debt.”
Persons:
they’re, ”, Craig Copeland
Organizations:
Dow Inc, News Corp, Masco Corp, Unilever, Fidelity Investments, “, Research Institute