Secure-2-Act-Student-Loans-MI (1)

1. Student loan matching contributions

Effective in 2024

Employers can now amend their 401(k) plans to treat qualified student loan payments as elective deferrals for the purpose of receiving an employer-matching contribution, allowing employees to receive matching contributions without reducing their take-home pay. This provision will positively impact an employee's ability to save for retirement, according to the report.

What SECURE 2.0 provisions are plan sponsors and employers adopting most?  More than 30 provisions have already taken effect in 2023 and 2024, while other provisions will be rolled out over the next few years. In general, SECURE 2.0 has been well-received by employers and plan sponsors, however, many still need advice on how best to adapt the new compliance requirements and optional provisions in the new retirement legislation, according to UBS' Workplace Voice report.

Related: Top 5 SECURE 2.0 provisions plan sponsors are most likely to adopt: Fidelity

The following provisions, some of which went into went into effect in 2024 and some will take effect in 2025, will positively impact an employee's ability to save for retirement, according to the report.

NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.

Lynn Cavanaugh

Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.