More employers add 401(k) plan match for workers paying student loans [Video]

Companies can now offer their workers a “match” on their student loan payments in the form of a contribution to their 401(k) plan — and a small but growing number of employers are taking advantage of the option.

Traditionally, companies have only paid a 401(k) match to workers based on their voluntary contributions to the workplace retirement plan. A worker choosing to save 3% of their annual pay in a 401(k) might get a 3% match from their employer, for example.

Now, companies can treat a worker’s student loan payments like an elective 401(k) plan contribution.

Federal law allows employers to give a match based on a worker’s payments toward student debt. Workers generally don’t have to contribute to the 401(k) plan to qualify for the funds.

The measure, part of a package of retirement changes dubbed Secure 2.0, kicked in starting in 2024.

The policy’s goal …