A new federal rule next year will make it easier for borrowers paying back their student loans to also save for their retirement.

Section 110 of the SECURE 2.0 Act, legislation signed into law last December, will allow employers to provide 401(k), 403(b), or SIMPLE IRA matching for qualified student loan payments. The provision is optional and effective January 2024.

This change helps to address a longstanding challenge for most borrowers: paying back student debt prevents them from saving for other goals, a problem that has resurfaced now that federal loan payments are no longer on pause. Additionally, this provision can benefit employers as far as retention, reducing attrition, and recruiting new talent.

–Student loan borrowers will get a hand in saving for retirement next year

Categories: Politics

Tags: Economic History, Economics, Finance, Philosophy, Politics, Psychology, Socialist Finance, United States