IRS Issues Guidance on Retirement Matches for Student Loan Repayments
Employers now have some clarity around a new program that allows them to match retirement plan contributions to employees’ student loan payments. The IRS on Aug. 19 released long-awaited interim guidelines regarding the program, a provision under SECURE ACT 2.0 that allows employers with 401(k), 403(b), governmental 457(b), or Savings Incentive Match Plan for Employees (SIMPLE) IRA plans to match employees’ student loan payments like they would for traditional retirement contributions. The provision took effect this year, but employers have been waiting for more guidance around the new program. In Notice 2024-63, the IRS clarified eligibility rules and certification requirements in a Q&A format. The guidance applies for plan years beginning after Dec. 31, 2024, the agency said. The notice addresses a variety of plan-administration issues, the IRS said in an accompanying news release , including: General student loan matching contribution eligibility rules (including dollar an...