RETIREMENT PLAN UPDATES
IRS FAQs Address Matching Contributions Related to Student Loan
Repayments
On August 19, 2024, the Internal Revenue Service (IRS) issued
Notice 2024 63 that provides guidance for plan sponsors with
respect to match eligible student loan payments under the SECURE
2.0 Act. The guidance addresses issues that may arise for 401(k),
403(b), governmental 457(b) or SIMPLE IRA plans in administering
such matching contributions, including: general eligibility,
employee certification requirements and reasonable plan procedures.
The guidance also describes special nondiscrimination testing
relief applicable to student loan repayments. This guidance applies
for plan years beginning January 1, 2025, while plan sponsors may
rely on a good faith interpretation of the SECURE 2.0 Act for plan
years beginning before January 1, 2025.
