If passed, they could benefit Americans across the spectrum regardless of how close they are to retirement, though many provisions wouldn't take immediate effect.
"Employees, including those who are not in a position to contribute at all to their 401 accounts because of student loans, who participate in the new program could accumulate tens of thousands of dollars in their 401 accounts over a decade, which could be worth hundreds of thousands of dollars at retirement," insurance company The Travelers Cos. The program considers student loan payments when determining the company’s 401 contribution.
Though some companies have launched programs like Travelers' to help their employees, the guidance included in the Secure 2.0 Act would make it easier for all businesses to do so.Debt relief will change the lives of some with student loans, but fall short for others.
“It’s a tight window for passage, but it’s still likely because it’s such a bipartisan piece of legislation,” said Dave Stinnett, a principal who heads Vanguard Strategic Retirement Consulting. Medora Lee and Elisabeth Buchwald are money, markets, and personal finance reporters at USA TODAY. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
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