Match for Student Debtors: The Top 6 Things Plan Advisers Need to Know

Benefits and executive compensation partner Fred Reish and counsel Joan Neri coauthored a PLANADVISER article for employers that sponsor savings-based plans and employ college graduates regarding a new provision of the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act.

Reish and Neri explained that the provision permits matching contributions for eligible employees paying off their qualifying student loans. They noted that plan sponsors should consider whether they need this provision to help recruit and retain college-education workers.

The authors also shared compliance considerations, such as the opportunity to “Rothify” employer contributions and financial incentives to encourage plan participation. They outlined how advisers can assist plan sponsors in deciding whether this change will benefit the employer and help its participants by considering education, full vesting and administration.

The full article is available for PLANADVISER subscribers.