Betterment at Work Launches Industry-First Small Business Student Loan 401(k) Matching Solution

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Jan 25, 2024, 09:00 ET

Employers can now help workers with student debt improve their retirement readiness

NEW YORK, Jan. 25, 2024 /PRNewswire/ -- Betterment at Work, a leading provider of modern financial benefits for today's diverse workforce, announces the first commercial product that allows small business employers to automatically match employee student loan payments with a 401(k) contribution.

"We know that student debt can be a major impediment to saving for retirement," said Sarah Levy, CEO of Betterment. "Our industry-first student loan 401(k) matching solution is a compelling addition to our modern 401(k) that will help to broaden plan participation to those whose student debt previously kept them from saving for retirement."

Betterment at Work's new offering comes as a key provision from the Secure Act 2.0 legislation goes into effect, allowing qualified student loan repayments to count as elective deferrals and be eligible for 401(k) matching contributions from an employer.

Employees with access to Betterment's 401(k) can record qualified loan payments within the platform. Employers can then match these payments with a contribution to the employee's 401(k), enabling borrowers to pay down loans while continuing to proactively save for retirement. To simplify administration of this new match, employers can choose to make the match annually even if their other 401(k) match happens on a per-payroll basis.

To learn more about Betterment at Work's 401(k) and this new offering, visit our website here.

About Betterment at Work:

Betterment at Work is a leading provider of 401(k)s and modern financial benefits for today's diverse workforce, empowering small-to-medium-sized businesses to attract and retain talent. Built on the same technology that powers our investment platform, Betterment at Work helps employees meet goals starting with retirement and going beyond, with customizable portfolios, debt management tools, easy-to-understand advice, and more. Our automation makes it easy to offer a better 401(k), and Betterment offers expertise to help administer a plan for employee accounts, supporting personalized choice.
For more information, visit www.betterment.com/work.

Contact:
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SOURCE Betterment