‘‘(I) the limitation applicable 
under section 402(g) for the year (or, 
if lesser, the employee’s compensation 
(as defined in section 415(c)(3)) for 
the year), reduced by 
‘‘(II) the elective deferrals made 
by the employee for such year, and 
‘‘(ii) if the employee certifies to the 
employer making the matching contribu-
tion under this paragraph that such pay-
ment has been made on such loan. 
For purposes of this subparagraph, the term 
‘qualified higher education expenses’ means the 
cost of attendance (as defined in section 472 of 
the Higher Education Act of 1965, as in effect 
on the day before the date of the enactment of 
the Taxpayer Relief Act of 1997) at an eligible 
educational institution (as defined in section 
221(d)(2)).’’. 
(c) MATCHING
CONTRIBUTIONS
FOR
QUALIFIED 
STUDENT LOAN PAYMENTS.—Section 401(m) of such 
Code is amended by redesignating paragraph (13) as para-
graph (14), and by inserting after paragraph (12) the fol-
lowing new paragraph: 
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‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI-
FIED STUDENT LOAN PAYMENTS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (4)(A)(iii), an employer contribution 
made to a defined contribution plan on account 
of a qualified student loan payment shall be 
treated as a matching contribution for purposes 
of this title if— 
‘‘(i) the plan provides matching con-
tributions on account of elective deferrals 
at the same rate as contributions on ac-
count of qualified student loan payments, 
‘‘(ii) the plan provides matching con-
tributions on account of qualified student 
loan payments only on behalf of employees 
otherwise eligible to receive matching con-
tributions on account of elective deferrals, 
‘‘(iii) under the plan, all employees el-
igible to receive matching contributions on 
account of elective deferrals are eligible to 
receive matching contributions on account 
of qualified student loan payments, and 
‘‘(iv) the plan provides that matching 
contributions on account of qualified stu-
dent loan payments vest in the same man-
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ner as matching contributions on account 
of elective deferrals. 
‘‘(B) TREATMENT FOR PURPOSES OF NON-
DISCRIMINATION RULES, ETC.— 
‘‘(i) NONDISCRIMINATION
RULES.— 
For purposes of subparagraph (A)(iii), 
subsection (a)(4), and section 410(b), 
matching contributions described in para-
graph (4)(A)(iii) shall not fail to be treated 
as available to an employee solely because 
such employee does not have debt incurred 
under a qualified education loan (as de-
fined in section 221(d)(1)). 
‘‘(ii) STUDENT LOAN PAYMENTS NOT 
TREATED
AS
PLAN
CONTRIBUTION.—Ex-
cept as provided in clause (iii), a qualified 
student loan payment shall not be treated 
as a contribution to a plan under this title. 
‘‘(iii) 
MATCHING
CONTRIBUTION 
RULES.—Solely for purposes of meeting 
the requirements of paragraph (11)(B) or 
(12) of this subsection, or paragraph 
(11)(B)(i)(II), (12)(B), or (13)(D) of sub-
section (k), a plan may treat a qualified 
student loan payment as an elective defer-
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ral or an elective contribution, whichever is 
applicable. 
‘‘(iv) ACTUAL
DEFERRAL
PERCENT-
AGE TESTING.—In determining whether a 
plan meets the requirements of subsection 
(k)(3)(A)(ii) for a plan year, the plan may 
apply the requirements of such subsection 
separately with respect to all employees 
who receive matching contributions de-
scribed in paragraph (4)(A)(iii) for the 
plan year. 
‘‘(C) EMPLOYER MAY RELY ON EMPLOYEE 
CERTIFICATION.—The employer may rely on an 
employee certification of payment under para-
graph (4)(D)(ii).’’. 
(d) 
SIMPLE
RETIREMENT
ACCOUNTS.—Section 
408(p)(2) of such Code is amended by adding at the end 
the following new subparagraph: 
‘‘(F) 
MATCHING
CONTRIBUTIONS
FOR 
QUALIFIED STUDENT LOAN PAYMENTS.— 
‘‘(i) IN
GENERAL.—Subject to the 
rules of clause (iii), an arrangement shall 
not fail to be treated as meeting the re-
quirements of subparagraph (A)(iii) solely 
because under the arrangement, solely for 
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purposes of such subparagraph, qualified 
student loan payments are treated as 
amounts elected by the employee under 
subparagraph (A)(i)(I) to the extent such 
payments do not exceed— 
‘‘(I) the applicable dollar amount 
under subparagraph (E) (after appli-
cation of section 414(v)) for the year 
(or, if lesser, the employee’s com-
pensation 
(as 
defined 
in 
section 
415(c)(3)) for the year), reduced by 
‘‘(II) any other amounts elected 
by the employee under subparagraph 
(A)(i)(I) for the year. 
‘‘(ii) QUALIFIED STUDENT LOAN PAY-
MENT.—For purposes of this subpara-
graph— 
‘‘(I) IN
GENERAL.—The term 
‘qualified 
student 
loan 
payment’ 
means a payment made by an em-
ployee in repayment of a qualified 
education loan (as defined in section 
221(d)(1)) incurred by the employee 
to pay qualified higher education ex-
penses, but only if the employee cer-
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tifies to the employer making the 
matching contribution that such pay-
ment has been made on such a loan. 
‘‘(II) QUALIFIED
HIGHER
EDU-
CATION EXPENSES.—The term ‘quali-
fied higher education expenses’ has 
the same meaning as when used in 
section 401(m)(4)(D). 
‘‘(iii) APPLICABLE RULES.—Clause (i) 
shall apply to an arrangement only if, 
under the arrangement— 
‘‘(I) matching contributions on 
account of qualified student loan pay-
ments are provided only on behalf of 
employees otherwise eligible to elect 
contributions 
under 
subparagraph 
(A)(i)(I), and 
‘‘(II) all employees otherwise eli-
gible to participate in the arrange-
ment are eligible to receive matching 
contributions on account of qualified 
student loan payments.’’. 
(e) 403(b) PLANS.—Section 403(b)(12)(A) of such 
Code is amended by adding at the end the following: ‘‘The 
fact that the employer offers matching contributions on 
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account of qualified student loan payments as described 
in section 401(m)(13) shall not be taken into account in 
determining whether the arrangement satisfies the re-
quirements of clause (ii) (and any regulation there-
under).’’. 
(f) 457(b) PLANS.—Section 457(b) of such Code is 
amended by adding at the end the following: ‘‘A plan 
which is established and maintained by an employer which 
is described in subsection (e)(1)(A) shall not be treated 
as failing to meet the requirements of this subsection sole-
ly because the plan, or another plan maintained by the 
employer which meets the requirements of section 401(a) 
or 403(b), provides for matching contributions on account 
of qualified student loan payments as described in section 
401(m)(13).’’. 
(g) REGULATORY AUTHORITY.—The Secretary shall 
prescribe regulations for purposes of implementing the 
amendments made by this section, including regulations— 
(1) permitting a plan to make matching con-
tributions for qualified student loan payments, as 
defined in sections 401(m)(4)(D) and 408(p)(2)(F) 
of the Internal Revenue Code of 1986, as added by 
this section, at a different frequency than matching 
contributions are otherwise made under the plan, 
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provided that the frequency is not less than annu-
ally; 
(2) permitting employers to establish reasonable 
procedures to claim matching contributions for such 
qualified student loan payments under the plan, in-
cluding an annual deadline (not earlier than 3 
months after the close of each plan year) by which 
a claim must be made; and 
(3) promulgating model amendments which 
plans may adopt to implement matching contribu-
tions on such qualified student loan payments for 
purposes of sections 401(m), 408(p), 403(b), and 
457(b) of the Internal Revenue Code of 1986. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made for years 
beginning after December 31, 2021. 
Æ 
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