A new federal rule next year will make it easier for borrowers paying back their student loans to also save for their retirement.of the SECURE 2.0 Act, legislation signed into law last December, will allow employers to provide 401, 403, or SIMPLE IRA matching for qualified student loan payments. The provision is optional and effective January 2024.
But it isn’t limited to employees who haven’t made contributions. If an employee isn’t maximizing their full match due to student loan payments, they will also benefit from the provision. "We never want to leave an employer match on the table and qualified student loan payments should be no different," Jim Mahaney, a certified financial planner at Mavericus Retirement Services LLC, told Yahoo Finance. "I would counsel clients to determine in the fourth quarter if they are potentially missing out on any remaining potential 401 employer match and to do a one-time prepayment of principal to their student loan if they are.
"Between student loans, interest rate increases and inflation, employees have a lot to navigate when planning for retirement," Stevenson said. "There is a strong business imperative for employers to help."