In August, the IRS issued Notice 2024-63, which offers guidance for employer matching contributions based on student loan payments made by employees. Employers are permitted to match contributions to a qualified retirement plan based on payments made to student loans under the SECURE Act of 2022. This allowance is designed to help employees to build their retirement accounts even when limited in their ability to save for retirement.
Employers who choose to offer this optional benefit to employees should review the notice, which serves as an overview of the requirements associated with the match. It outlines:
- Limits on employer matches
- Administrative issues (employee certifications, plan procedures, eligibility, etc.)
- Non-discrimination testing relief for plans including student loan matching contributions
The notice applies to plan years starting after December 31, 2024.
Review the full Notice 2024-63 here.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
