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The Free Financial Advisor
The Free Financial Advisor
Brandon Marcus

Your Employer May Match Student Loan Payments in 2026—But Only Up to the 401(k) Deferral Limit

Combining 401(k) Deferrals and Student-Loan Repayments Can’t Exceed $24,500 in 2026—Plan Your Budget Carefully
In 2026, 401(k) contributions and student loan repayments share a combined $24,500 limit for employer matching, making coordinated budgeting essential for maximizing retirement benefits – Shutterstock

Under SECURE 2.0, employers can choose to treat qualified student loan payments as though they were 401(k) contributions when calculating matching retirement contributions. However, the amount of loan payments eligible for matching generally cannot exceed the annual elective deferral limit, which rises to $24,500 in 2026. That makes it important for employees to understand how their employer’s matching formula works before assuming every loan payment will generate additional retirement savings.

How the Combined $24,500 Limit Actually Works

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