"Maximizing 401(k) Savings by Tackling Student Debt"

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Source: CNBC
"Maximizing 401(k) Savings by Tackling Student Debt"
Photo: CNBC
TL;DR Summary

The Secure 2.0 Act of 2022 allows employers to match workers' student loan payments with contributions to their retirement plans, aiming to help employees struggling to save for the future due to student debt. The provision, effective from Jan. 1, 2024, was inspired by Abbott's "Freedom 2 Save" program. While it may take time for the benefit to be widely adopted, interested workers can inquire with their employers and share Abbott's blueprint. The student debt 401(k) match allows eligible employees to receive a company contribution into their 401(k) by putting a percentage of their pay toward their student loan debt, with employers having the flexibility to set their own numbers.

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