U.S. Rep. Darin LaHood (R-IL) introduced a bipartisan bill that would help Americans reduce their student loan debt while simultaneously building up their retirement savings.
“Individuals who are working hard to pay off student loans shouldn’t lose out on opportunities to put away money for retirement,” Rep. LaHood said. “Our bipartisan legislation will allow workers to continue to make student loan payments while receiving employer matching contributions into their retirement plan.”
Rep. LaHood on April 30 cosponsored the Retirement Parity for Student Loans Act, H.R. 2917, with bill sponsor U.S. Rep. Danny Davis (D-IL) and six other original cosponsors, including U.S. Rep. Ron Estes (R-KS). The legislation would amend the Internal Revenue Code of 1986 to provide for retirement matching contributions by employers on accounts of student loan payments made by employees, according to the congressional record.
Specifically, H.R. 2917 would permit 401(k), 403(b), SIMPLE and governmental 457(b) retirement plans to make matching contributions to workers as if their student loan payments were salary reduction contributions, thereby allowing workers to pay off debt while saving for retirement at the same time, according to a bill summary provided by Rep. LaHood’s office.
U.S. Sen. Ron Wyden (D-OR) introduced similar legislation in the Senate. The legislation is slated to be marked up this week by the U.S. House Ways and Means Committee as part of the Securing a Strong Retirement Act of 2021, H.R. 2954. Rep. LaHood serves on the Ways and Means Committee.