New 401(k) Rules Give Employees More Flexibility and Employers More Options to Help With Student Loans and Savings
• Employers can offer 401(k) matching contributions to employees making student loan payments, allowing them to save for retirement even if not contributing themselves
• Employers can give workers up to $5,250 tax-free annually to pay down student loans, potentially freeing up income to save more for retirement
• Employees can make penalty-free 401(k) withdrawals of up to $1,000 per year for emergencies without explanation
• Employers can create "side car" emergency savings funds within 401(k)s, matched with retirement contributions
• Part-time workers logging 500 hours a year for 2 straight years must be allowed to participate in 401(k) plans starting in 2025