SECURE 2.0 Student Loan Match Calculator 2026 — Section 110

SECURE 2.0 Act Section 110, effective January 1, 2024, allows employers to treat qualified student loan payments (QSLPs) as if they were elective deferrals for the purpose of employer matching contributions. This means if you are paying student loans instead of contributing to your 401(k), 403(b), 457(b), or SIMPLE IRA, your employer can still make matching contributions to your retirement account. The employer match goes into your retirement account, not toward your loan balance. You must certify your loan payments annually and the payments must be for loans used to pay for qualified education expenses.

Yes. The employer matching contributions received under the student loan match program count toward the annual addition limit for defined contribution plans under IRC 415 (the lesser of 100% of compensation or $70,000 for 2026). However, they do NOT count toward the employee elective deferral limit under IRC 402(g) ($23,500 in 2026). The match is treated the same as any other employer match for purposes of vesting schedules and plan contribution limits. You are still free to make your own elective deferrals up to the $23,500 limit in addition to having loan payments matched.

A qualified student loan payment (QSLP) must be made on a qualified education loan (as defined under IRC 221(d)(1)) incurred by the employee to pay for their own qualified higher education expenses. The loans must be in the employee's name — spouse or dependent loan payments generally do not qualify. Private student loans qualify as well as federal loans. The loan must have been used for tuition, fees, books, supplies, and required equipment for courses at eligible institutions. The employee must certify the payment amount annually. Refinanced loans that were originally for education expenses also qualify.

The employer uses the same matching formula applied to regular elective deferrals. For example, if an employer offers 100% match up to 5% of salary, and an employee earns $80,000 and makes $4,000 in student loan payments (5% of salary), the employer contributes $4,000 to the employee's retirement account. The match is limited to the same cap as regular match — contributions cannot exceed the match formula applied to the QSLP. Employers may choose to offer lower match rates for QSLPs compared to regular deferrals, but many adopt the same formula. The employer retains discretion in whether to offer this feature at all.

Without the match, every dollar you pay toward student loans is an after-tax dollar that builds no retirement wealth. With the match, each dollar of loan payment generates employer retirement contributions that grow tax-deferred. The employer match is essentially free money: you make the loan payment you would have made anyway, and your employer contributes to your retirement account on your behalf. Over 20-30 years, the compounded value of those employer contributions can significantly exceed the original match amount. The match does not reduce your loan balance faster, but it builds parallel retirement wealth at no additional cost to you.