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Secure Act 2.0 Student Loan Match

Secure Act 2.0 Student Loan Match
Secure Act 2.0 Student Loan Match
Secure Act 2.0 Student Loan Match
Secure Act 2.0 Student Loan Match
Secure Act 2.0 Student Loan Match

What is Secure Act 2.0?

Under Section 110 of SECURE Act 2.0, effective after December 31, 2023, employers can now consider qualified student loan payments as elective deferrals for employer matching contributions to defined contribution plans.

For instance, if an employee allocates $400 monthly to a qualified education loan, the employer can treat it as if the employee deferred $400, qualifying for an employer match. Limits apply, such as the annual elective deferral limit and total annual additions to defined contribution plans.

The legislation offers administrative clarity, allowing reliance on annual employee certifications for payments and permitting flexibility in the frequency of matching contributions for student loan payments.

Student Loan Match & PeopleJoy

The PeopleJoy platform simplifies Secure Act 2.0 assistance by managing the certification and calculation process for employee student loan payments. Employees annually certify these payments, a crucial step for employers to calculate matching portions manually, especially as not all 401k record keepers accommodate Secure Act 2.0.

PeopleJoy ensures compliance by tracking and verifying whether the employee, spouse, or dependent incurred the loan. By streamlining these processes, PeopleJoy aids employers in seamlessly navigating the intricacies of Secure Act 2.0, offering clarity and efficiency in managing employer matches and maintaining compliance.


Secure Act 2.0 & White-Glove Service

PeopleJoy's White Glove service streamlines Secure Act 2.0 compliance by handling the intricate process of employee certifications and employer match calculations. We alleviate the burden on employees by managing the annual certification of student loan payments, ensuring a smooth and accurate procedure.

In situations where 401k record keepers may not fully account for Secure Act 2.0 nuances, PeopleJoy steps in to manually calculate the employer's matching portion. Our comprehensive approach simplifies the complexities associated with certification and calculation, providing employers with a reliable solution for navigating the Secure Act 2.0 landscape.

Over $30,000,000+ Forgiven in 2023