SECURE Act 2.0 and the Future of Financial Wellness Benefits
Advancing Employer Financial Wellness Strategies
The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 introduced significant updates to how employers can support financial wellness through SECURE Act 2.0 provisions — expanding the role of workplace benefits beyond traditional education and retirement programs.
By connecting student loan repayment, retirement savings, emergency savings, and education planning, SECURE Act 2.0 created new opportunities for employers to deliver more integrated, long-term support.
These changes reflect a broader shift toward holistic benefit approaches that help employees manage both immediate financial needs and long-term goals within a more connected financial wellness framework.
What is SECURE Act 2.0?
The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 is a federal law that introduced a series of updates to retirement, education, and financial wellness benefits.
Building on existing frameworks, SECURE 2.0 created new ways to connect education-related financial obligations — like student loan debt — with long-term savings and broader financial goals.
Student Loan Payments and Retirement Matching
Before SECURE 2.0, employees paying down student loans often had to choose between reducing debt and contributing to retirement savings. SECURE Act 2.0 eliminated that tradeoff by allowing employers to treat qualified student loan payments as if they were retirement contributions for the purpose of employer matching.
This provision enables employees to continue paying down student debt while still receiving employer retirement contributions — helping them build long-term savings while managing existing financial obligations.
This builds on earlier employer student loan repayment benefits introduced through Section 127 and expanded by the CARES Act. In doing so, this provision acts as a bridge between debt repayment and retirement savings, allowing both to work together within a single financial wellness framework.
Emergency Savings Support
The legislation introduced new options for employer-sponsored emergency savings programs, creating pathways for employees to build short-term financial resilience alongside long-term savings.
These provisions help employers support:
- Unexpected expenses.
- Reduced reliance on high-interest borrowing.
- Greater overall financial stability for employees.
Education Savings Flexibility
SECURE Act 2.0 expanded how education savings can be used and integrated into broader financial planning.
These updates provide additional flexibility in:
- How education savings accounts are utilized.
- How employees plan for future education expenses.
- How employers incorporate long-term education planning into benefits strategies.
Together, these changes reflect a shift toward a more holistic financial wellness benefits — enabling employers to support employees across debt management, savings, and long-term financial planning within a more connected and flexible framework.
Student Loan Retirement Matching
One of the most impactful provisions of SECURE Act 2.0 is the ability for employers to provide retirement matching contributions based on employees’ student loan payments.
This provision addresses a long-standing challenge: many employees prioritize paying down student debt, which can limit their ability to contribute to retirement plans and take full advantage of employer matching programs.
Employers implementing student loan retirement matching often require coordination across payroll, benefits, and retirement plan administration.
See how BenefitEd supports integrated financial wellness programs.
Matching Contributions Based on Student Loan Payments
SECURE Act 2.0 allows employers to treat an employee’s qualified student loan payments as if they were elective contributions to a retirement plan for the purpose of employer matching.
This means:
- Employees can continue making student loan payments.
- Employers can provide matching contributions to a retirement plan, such as a 401(k).
- Employees can build retirement savings even if they are not actively contributing to the plan.
Supporting Both Debt Repayment and Retirement Savings
Before SECURE Act 2.0, employees often had to choose between paying down student debt or contributing enough to qualify for employer retirement matching.
This provision removes that tradeoff by allowing employees to benefit from both at the same time.
As a result, employees can:
- Reduce student loan balances.
- Continue building long-term retirement savings.
- Avoid missing out on valuable employer contributions.
Expanding Retirement and Financial Wellness Strategies
For employers, student loan retirement matching creates a new opportunity to enhance retirement benefits while supporting broader financial wellness goals. Employers evaluating these programs often look at retention and engagement outcomes associated with financial wellness benefits. Internal BenefitEd program data has shown significantly higher retention among participating employees compared with similar non-participating groups.
Organizations can:
- Extend retirement plan participation benefits to employees focused on debt repayment.
- Increase the perceived value of employer matching programs.
- Align retirement benefits with evolving workforce financial needs.
By linking student loan repayment with retirement savings, SECURE Act 2.0 enables a more integrated approach to financial wellness — helping employers support employees in achieving both immediate financial stability and long-term financial security.
Emergency Savings Innovations
Before SECURE Act 2.0, emergency savings was often separate from workplace benefits and long-term financial planning. The Act introduced new ways for employers to support short-term financial stability as part of a more connected financial wellness framework.
These provisions recognize that many employees face immediate financial pressures — such as unexpected expenses — that can disrupt both long-term savings and overall financial well-being. These programs complement retirement and education benefits by enabling employees to address immediate financial needs without disrupting long-term savings. In doing so, they help employees stay on track toward their broader financial goals.
Employers implementing emergency savings programs often require support for account structure, payroll integration, and ongoing administration.
See how BenefitEd supports employer-sponsored emergency savings accounts.
New Emergency Savings Options
SECURE Act 2.0 introduced new approaches to employer-sponsored emergency savings, helping organizations integrate short-term financial resilience into broader financial wellness strategies. One example is the pension-linked emergency savings account (PLESA), which connects emergency savings with workplace retirement plans. PLESAs represent one specific emergency savings structure created under SECURE Act 2.0, while other emergency savings programs may be offered separately from retirement plans.
These emergency savings approaches are designed to help employees:
- Build savings for unexpected expenses.
- Access funds when needed without relying on high-interest credit.
- Maintain greater financial flexibility.
Supporting Short-Term Financial Resilience
Beyond retirement-plan-linked approaches such as PLESAs, employers may also support emergency savings through employer-sponsored emergency savings accounts (ESAs) that help employees strengthen overall financial wellness and build resilience for unexpected expenses.
By offering employer-supported ESAs, organizations can help employees:
- Manage unexpected financial challenges.
- Reduce stress related to financial uncertainty.
- Maintain stability during periods of income disruption.
Strengthening Financial Wellness Strategies
Emergency savings programs complement existing education and retirement benefits by addressing immediate financial needs alongside long-term goals.
Employers can use these programs to:
- Enhance financial wellness offerings.
- Improve workforce stability and engagement.
- Support employees across different stages of their financial journey.
By introducing structured emergency savings options, the Act enables employers to take a more comprehensive approach to financial wellness — helping employees build resilience while continuing to plan for the future.
Expanded Education Savings Flexibility
SECURE Act 2.0 introduced updates that expand how education savings can be used as part of a broader financial wellness strategy.
These changes provide greater flexibility in how employees plan for and utilize education savings — while creating new opportunities for employers to support long-term financial goals.
Together, these updates strengthen the role of education savings within a broader financial wellness framework, connecting long-term planning with employees’ financial priorities today.
529 Plan Enhancements
SECURE Act 2.0 builds on existing education savings frameworks, including 529 plans, by expanding how funds can be used and integrated into overall financial planning.
One notable update allows certain unused 529 education savings to be transferred to a Roth IRA for the same beneficiary, helping ensure those funds can still support long-term financial goals.
This legislation also expanded how 529 funds can be used, including support for apprenticeship programs and limited student loan repayment.
These updates build on prior expansions of eligible education expenses, allowing employees to:
- Apply education savings in more flexible ways.
- Align savings strategies with changing education and workforce needs.
- Incorporate education planning into broader financial goals.
Education Savings Modernization
Education savings remain a key component of financial wellness, particularly as employees plan for future education needs for themselves or their families.
By expanding flexibility, updates from SECURE Act 2.0 help employees:
- Plan more effectively for future education expenses.
- Reduce reliance on borrowing.
- Adapt to evolving education and workforce pathways.
Enhancing Family-Focused and Long-Term Benefits
Expanded education savings options allow employers to strengthen benefits programs that support employees beyond their immediate financial needs.
Organizations can use these updates to:
- Support long-term education planning for employees and their families.
- Complement tuition assistance and student loan repayment benefits.
- Offer a more comprehensive financial wellness strategy across life stages.
By increasing flexibility in education savings, SECURE Act 2.0 helps employers connect short-term financial support with long-term planning — creating a more complete and adaptable approach to employee financial wellness.
Why SECURE Act 2.0 Matters for Employees and Employers
For employers, SECURE Act 2.0 represents a meaningful shift in financial wellness strategies — moving from isolated benefits to more connected, comprehensive programs.
By linking student loan repayment, retirement savings, emergency savings, and education planning, these provisions allow employers to address multiple financial needs through a more integrated approach.
More Flexible and Connected Financial Support
SECURE Act 2.0 helps employees navigate competing financial priorities by removing barriers between short-term needs and long-term goals.
These updates allow employees to:
- Build retirement savings while paying down student loan debt.
- Access emergency savings to manage unexpected expenses.
- Plan for future education costs with greater flexibility.
Instead of treating financial goals as separate or competing priorities, employees can now make progress across multiple areas at the same time.
A More Comprehensive Financial Wellness Strategy
For employers, SECURE Act 2.0 provides new tools to design benefits programs that reflect the real financial challenges employees face today.
Organizations can use these updates to:
- Expand traditional benefits into broader financial wellness offerings.
- Support employees across different life stages and financial situations.
- Enhance the value and relevance of existing benefit programs.
These capabilities make it easier to align benefits with evolving workforce expectations.
Connecting Debt, Savings, and Long-Term Planning
SECURE Act 2.0 shifts the focus of employer-sponsored benefits from individual offerings to a more connected financial ecosystem.
Instead of offering separate programs for education benefits, retirement savings, and short-term financial needs, employers can now integrate these elements into a cohesive strategy that supports employees across their full financial journey.
By enabling more flexible, interconnected benefits, the Act helps employers create programs that are not only compliant with evolving legislation but also more responsive to the financial realities of today’s workforce. These programs also help employees make meaningful progress toward their financial goals.
How BenefitEd Supports Financial Wellness Strategies
BenefitEd helps employers design, implement, and manage programs aligned with SECURE Act 2.0 financial wellness provisions. This enables more connected, flexible benefits that support employees across debt, savings, and long-term financial planning.
Our approach combines regulatory awareness, configurable program design, and ongoing support to help employers deliver integrated benefits strategies with confidence.
Integrated Program Design Across Benefit Types
SECURE Act 2.0 introduced new opportunities to connect education, savings, and retirement benefits within a unified strategy.
BenefitEd helps employers:
- Align student loan repayment with retirement matching opportunities.
- Incorporate emergency savings programs alongside existing benefits.
- Integrate education savings into a broader financial wellness offering.
This approach makes it easier to deliver cohesive benefits that address multiple financial needs.
Flexible Configuration to Support Evolving Programs
BenefitEd’s platform allows employers to configure benefits programs to reflect new legislative capabilities introduced through SECURE Act 2.0.
This includes the ability to:
- Adapt program structures as financial wellness offerings expand.
- Support different employee populations and benefit eligibility scenarios.
- Align benefit delivery with organizational goals and workforce needs.
Ongoing Compliance and Legislative Alignment
As financial wellness programs evolve, maintaining alignment with current legislation and regulatory guidance is essential.
BenefitEd helps employers:
- Monitor updates related to SECURE Act 2.0 and related policies.
- Apply changes to program design and administration as needed.
- Maintain consistency with applicable tax and plan requirements.
Reporting and Visibility Across Financial Wellness Programs
Delivering integrated benefits requires clear visibility into how programs are used and how they interact.
BenefitEd provides reporting that allows employers to:
- Track participation and engagement across multiple benefit types.
- Monitor benefit usage and funding levels.
- Support informed decision-making around program design and optimization.
Employee Experience and Engagement
A connected benefits strategy is most effective when employees understand how different programs work together.
BenefitEd supports employees by:
- Providing clear, accessible guidance across benefit types.
- Helping employees navigate programs related to debt, savings, and retirement.
- Supporting engagement through a consistent and user-friendly experience.
By supporting integrated financial wellness strategies, BenefitEd enables employers to move beyond individual benefits — delivering programs that are adaptable, scalable, and aligned with the evolving financial needs of today’s workforce.
Legislative Reference and Official Resources
The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 was enacted as part of the Consolidated Appropriations Act of 2023 and introduced a wide range of updates to retirement and financial wellness benefits. Employers can reference official sources to understand how these provisions apply to retirement plans, education savings, and financial wellness programs.
The Law in Its Own Words
One of the most significant provisions for employers is Section 110 of SECURE Act 2.0, which created the student loan retirement matching benefit. The operative language reads:
An applicable employer plan may treat a qualified student loan payment made by an employee as an elective deferral for purposes of determining the employer match.
In plain terms: employers can now count an employee’s student loan payments the same way they count retirement contributions when calculating employer matching. Employees who are paying down student debt — and therefore not contributing to their retirement plan — can still receive employer retirement contributions.
SECURE Act 2.0 Legislative Overview
SECURE Act 2.0 includes key provisions that support student loan retirement matching, emergency savings programs, and expanded education savings flexibility — helping employers deliver more connected financial wellness benefits.
Frequently Asked Questions About SECURE Act 2.0
The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 is a federal law that introduced updates to retirement, education, and financial wellness benefits.
It expanded how employers can support employees by connecting repayment support, retirement savings, emergency savings, and education planning within a more integrated framework.
SECURE Act 2.0 introduced new ways for employers to support employees across multiple financial priorities, including:
- Student loan retirement matching.
- Workplace emergency savings programs.
- Expanded flexibility for education savings accounts.
These changes allow employers to move beyond single-benefit solutions toward more comprehensive financial wellness strategies.
A SECURE Act 2.0 student loan retirement match allows employers to make retirement plan matching contributions based on employees' qualified student loan payments.
This means employees can receive employer retirement contributions even if they are not actively contributing to a retirement plan, as long as they are making eligible student loan payments.
This provision helps employees avoid having to choose between paying down student debt and saving for retirement.
Employees can:- Continue making qualifying education payments.
- Receive employer retirement contributions.
- Build long-term savings while managing existing debt.
SECURE Act 2.0 introduced new frameworks for employer-sponsored emergency savings, including options like pension-linked emergency savings accounts (PLESAs).
These accounts allow employees to build short-term savings within or alongside retirement plans and access funds for unexpected expenses without affecting long-term retirement balances.
SECURE Act 2.0 expanded flexibility for 529 education savings plans by allowing certain unused funds to be transferred into a Roth IRA for the same beneficiary, subject to specific conditions and limits.
This change helps ensure that unused education savings can still support long-term financial goals.
SECURE Act 2.0 supports financial wellness by connecting different types of financial goals --- such as debt repayment, savings, and retirement --- into a more integrated system.
This approach helps employees make progress across multiple priorities instead of treating each goal separately.
Learn how SECURE Act 2.0 connects isolated benefits into a financial wellness strategy.
Build Financial Wellness Strategies With Confidence
Design and deliver connected benefits that support employees across debt, savings, and long-term financial goals.