Student Loan Mess Complicates 401(k) Plan for Young Savers

Employers can soon choose to let workers’ student loan repayments count toward 401(k) matching contributions under a recently enacted benefits law, but many are wary of taking that step while so much is unsettled with federal loan forgiveness programs.

The program, part of the SECURE 2.0 Act (Public Law 117-328), was designed to address concerns that too many workers burdened with student debt are funneling money to their loan service providers instead of their 401(k)s, missing out on “free money” available through employer matches. Employers’ use of the program could be clouded by uncertainty around a Biden student ...