What is the status on allowing 401(k) match for student loan payments?

A newly proposed Senate bill by Senate Finance Chairman Ron Wyden, would enable participants to continue saving for retirement while repaying their student debt, even in the event they can't afford to make their own contributions to a 401(k) plan. This feature could be offered at the option of the employer and would apply only for expenses pertaining to higher education.

Also, student loan payments would be eligible to earn “matching” 401(k) retirement contributions from employers under a bill introduced on Thursday, April 29 by Senate Finance Chairman Ron Wyden.

You may recall that last year, the U.S. froze payments and interest for all federal student loans in response to the coronavirus pandemic. Those protections are expected to remain in place at least through the end of September. We will monitor the status of this bill as it moves through the Senate and provide updates on what it will mean for employees and employers, should it pass. Contact a KerberRose Trusted Advisor with questions on student loan repayments or 401(k) matching.