New 401(k) Matching Benefit for Student Loan Payments Gains Traction Among Employers

The Secure 2.0 Act enables companies to match employees' student loan payments with contributions to their retirement plans, offering a novel approach to financial wellness.

• The Secure 2.0 Act, effective from 2022, allows employers to contribute to employees' 401(k) plans based on their student loan payments.
• Companies like Abbott, Verizon, and Chipotle have already implemented 401(k) matching for student loan payments, with varying contribution rates.
• Despite the potential benefits, many employers remain hesitant to adopt the new perk due to economic uncertainties and cost concerns.
• The benefit aims to alleviate the burden of student loan debt, which affects the retirement savings of nearly 85% of Americans.
• Interest in student loan repayment benefits is growing, with some companies offering direct payment assistance in addition to or instead of 401(k) matching.

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