Student Loan Matching Under Secure 2.0: A Smarter Way to Support Your Team

For millions of Americans, student loan payments often take priority over saving for retirement. This financial tug-of-war can delay long-term planning, especially for younger employees who are just getting started in their careers.

But thanks to Section 110 of the SECURE 2.0 Act, employers now have a new way to help: by matching student loan payments just like they would traditional retirement contributions. This provision makes it possible to support employees tackling student debt and help them grow retirement savings at the same time.

At WealthRabbit, we make this easier than ever—so you can offer real financial wellness benefits without extra administrative stress.

The Financial Tug-of-War Between Debt and Saving

Many employees delay saving for retirement to focus on student loan repayment—especially those early in their careers.

This delay can dramatically impact long-term savings, due to lost years of compound growth.

From an employer perspective, financial stress affects productivity, morale, and retention. Supporting both goals—debt repayment and savings—can boost employee loyalty and well-being.

What Is Student Loan Matching Under SECURE 2.0?

Section 110 of the SECURE 2.0 Act allows employers to treat Qualified Student Loan Payments (QSLPs) like retirement deferrals. That means if an employee is paying off student loans instead of contributing to their SIMPLE IRA or 401(k), you can still make a matching contribution on their behalf.

To qualify:

• The student loan must be used for higher education expenses for the employee, their spouse, or a dependent.
• The loan payment must be made by the employee (not a third party).
• The employee must certify certain details: amount paid, payment date, and loan eligibility.
• QSLP matches are subject to the same IRS contribution limits that apply to traditional plan deferrals (for example, the SIMPLE IRA limit in 2025 is $16,500).

Plans that qualify include:

• SIMPLE IRA plans
• 401(k), 403(b), and governmental 457(b) plans

How It Works

Student loan matching under SECURE 2.0 is designed to be flexible and straightforward for both employers and employees. Here’s a step-by-step look at how it works:

STEP 1. Employees Make Student Loan Payments

Employees continue making regular payments toward their qualified student loans—just as they normally would.

STEP 2. Employees Self-Certify Their Payments

Each participating employee submits a simple certification confirming:

• The loan was used for qualified higher education expenses
• The payment was made by them

• The amount and date of the payment

STEP 3. Employers Make a Matching Contribution

Instead of matching a traditional retirement contribution, you match the student loan payment based on your existing plan rules.

For example, if your SIMPLE IRA plan offers a 3% match, and the employee made student loan payments equal to or greater than 3% of their compensation, they would receive the full match—even if they didn’t contribute to the plan directly.

STEP 4. Contributions Follow IRS Limits

All matches are subject to annual IRS limits (e.g., $16,500 for SIMPLE IRAs in 2025). Total contributions—whether based on deferrals or loan payments—cannot exceed these limits.

STEP 5. Vesting and Management

Just like traditional contributions, student loan matches are immediately vested and managed through the employee’s retirement account.

The WealthRabbit Advantage

WealthRabbit makes it simple to activate student loan matching in your plan. There’s no complicated tracking or extra paperwork—we streamline the process so your employees can certify their payments, and you can provide the match with confidence.

We help you:

• Enable QSLP features with just a few clicks
• Eliminate guesswork with automated tracking and reminders
• Stay compliant with SECURE 2.0 rules while offering a highly competitive benefit

Why It Pays to Act Now

• Attract and retain talent—especially younger employees with student debt
• Offer a meaningful benefit without the cost or complexity of a 401(k)
• Stay ahead of compliance as SECURE 2.0 continues to roll out

Student loan debt and retirement savings don’t have to compete. Thanks to SECURE 2.0, your business can now support both—with minimal effort and maximum impact.

With WealthRabbit, it’s easy to activate student loan matching and deliver smarter benefits.

Ready to get started? Let’s simplify retirement together.