SECURE 2.0 Act Section 110 is intended to assist employees who may not be able to save for retirement because they are overwhelmed with student debt, and thus are missing out on available employer matching contributions for retirement plans.

Section 110 allows such employees to receive those matching contributions by reason of repaying their student loans by permitting an employer to make matching contributions under a 401(k) plan, 403(b) plan, SIMPLE IRA or 457(b) government plan with respect to “qualified student loan payments.”

A qualified student loan payment is broadly defined as any indebtedness incurred by the employee solely to pay qualified higher education expenses of the employee.

For purposes of the nondiscrimination test applicable to elective contributions, Section 110 permits a plan to test separately the employees who receive matching contributions on student loan repayments.

Employer may rely upon the employee certification of student loan payment.

Effective Date: Applies to contributions made for plan years beginning after December 31, 2023.