Senate bill would allow 401(k) match for student loan payments

Student loan payments would be entitled to earn “matching” 401k retirement contributions from employers under a bill introduced Thursday by Senate Finance Chairman Ron Wyden.

The proposal would allow Americans to build retirement savings while repaying their student debt even if they cannot afford to make their own contributions to a 401(k) plan. Employers could offer the benefit voluntarily, and it would only apply to higher-education expenses.

“While I support student debt forgiveness, it’s important to put every option on the table to relieve this burden for millions of Americans,” Wyden said in a statement. His bill has four Senate Democrat cosponsors.

[More: Student loans center of 401(k) perk for Allianz workers]

Last year, the U.S. froze payments and interest for all federal student loans in response to the coronavirus pandemic. Those protections are expected to remain in place at least through the end of September.

[More: The ins and outs of pairing a 401(k) plan match with student loan repayment]

The post Senate bill would allow 401(k) match for student loan payments appeared first on InvestmentNews.

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