On Aug. 19, US IRS issued guidance on matching contributions made.
US IRS issued Notice 2024-63 providing interim guidance on employer matching contributions made to retirement plans related to employee student loan payments.
Implemented s. 110 of SECURE 2.0 (PL 117-328), which permits employers to provide matching contributions for employees based on their payments on student loans.
Employer Matching Guidance
Legislation allowed employers with 401(k), 403(b), governmental 457(b), or SIMPLE IRA plans to provide matching contributions based on student loan payments.
Rather than based only on elective contributions to retirement plan after Dec. 31, 2023
Using Q and A format, the notice addressed a variety of plan-administration issues.
Including special nondiscrimination testing relief for 401(k) plans that include student loan matching contributions, general student loan matching contribution eligibility rules
Reasonable student loan matching contribution procedures that a play may adopt.
What is required for certification that matching contribution requirements are met.
Effectiveness
Notice 2024-63 applies for plan years beginning after Dec. 31, 2024.
US IRS plans to issue proposed regulations providing further guidance on section 110, but plan sponsors may rely on the notice until the proposed regulations are issued.
Regulators
US IRS
Entity Types
Corp
Reference
PR IR-2024-217, Nt 2024-63, 8/19/2024; Citation: PL 117-328;
