<br><div><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__bv"/><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__bvd gnt_x__h"/><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Companies will offer 401(k) matches for student loan payments"><div class="gnt_em_vp_w" data-g-r="vp_tp" data-c-vt="teal" data-t-pl="teal-hero"><button class="gnt_em_vp_a gnt_em_vp__tp_a" data-g-r="vp_ap vp_tg" data-c-vpattrs="{"muted":true,"bContent":false,"an":"usatoday","pn":"USA TODAY","vidNum":1,"docking":true,"t0060":1,"cut":1}" data-c-vpdata="{"adsEnabled":true,"awsPath":"money","byline":"Bloomberg - Quicktake","canonicalURL":"","contentSourceCode":"VIDE","credit":"Bloomberg - Quicktake","duration":73000,"headline":"Companies will offer 401(k) matches for student loan payments","hlsURL":"https://hlsmedia.gannett-cdn.com/authoring/videos/videoelephant/renditions/72493258007/d3f33af0-846d-4231-ab90-e55ed72fb087/480p_30fps,720p_30fps,1080p_30fps,master.m3u8?subtitles=72493258007","id":"72493258007","image":{"opto":true,"url":"/gcdn/authoring/videos/videoelephant/thumbnails/72493258007.jpg"},"keywords":"Student loans","mp4URL":"https://www.gannett-cdn.com/authoring/videos/videoelephant/renditions/72493258007/d3f33af0-846d-4231-ab90-e55ed72fb087/1080p_30fps.mp4","origin":"Video Elephant","pageURL":{"long":"https://www.usatoday.com/videos/money/2024/02/06/companies-will-offer-401-k-matches-for-student-loan-payments/72493258007/"},"promoBrief":"Student loans have become a $1.8 trillion burden for millions of Americans. A new law signed by President Biden may help borrowers pay off their loans while saving for retirement.","propertyName":"USATODAY","series":"","ssts":{"section":"money","subsection":"","topic":"","subtopic":""},"tags":[{"id":"f76f4603-833f-4844-8013-1f89b7480b50","name":"Student loans"}],"title":"Employers can now help borrowers pay off student debt","url":"/videos/money/2024/02/06/companies-will-offer-401-k-matches-for-student-loan-payments/72493258007/"}" aria-label="Play video"><img alt="" class="gnt_em_vp_img" src="https://www.usatoday.com/gcdn/authoring/authoring-images/2024/12/11/USAT/76921234007-20190220-t-224434-z-987483766-rc-16287-c-7-e-70-rtrmadp-3-southwestoutlook.JPG?crop=6417,3610,x0,y334&width=660&height=371&format=pjpg&auto=webp" data-g-r="vp_po" fetchpriority="high" elementtiming="ar-lead-image" decoding="async"/><svg class="gnt_em_vp_svg"><use xlink:href="#gnt_svg_video_play"/></svg></button></div></aside><p class="gnt_ar_b_p">Pilots at Southwest Airlines can sock away more for retirement, thanks to a new retirement plan benefit that began in August as part of contract <a target="_blank" href="https://www.southwestairlinesinvestorrelations.com/news-and-events/news-releases/2024/01-22-2024-183737461#:~:text=DALLAS%20%2C%20Jan.,a%20new%20collective%20bargaining%20agreement." target="_blank" rel="noreferrer noopener" data-t-l=":b|z|k|${u}" class="gnt_ar_b_a">negotiations with the pilot’s union</a>, the airline said.</p><p class="gnt_ar_b_p">Since many Southwest pilots hit the 401(k) contribution limit before the tax year ends, the airline added a Market Based Cash Balance Plan (MBCBP) so pilots can receive the entire 17% Southwest contributes to their pilot’s retirements in a defined benefit plan, financial advisers said. The company’s contributions exceeding the <a target="_blank" href="http://www.usatoday.com/story/money/2024/11/03/irs-401k-limits-2025-super-catch-up/75994341007/" target="_blank" rel="noreferrer noopener" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">401(k) limit</a> would spill over into the MBCBP, which means more savings and immediate tax benefits for pilots, advisers said.</p><p class="gnt_ar_b_p">“This is an example of getting back to the original intent of the three-legged stool where the employee, employer and government all took some responsibility for employee retirement outcomes,” said Phillip Hulme at Stars and Stripes Financial Advisors in Douglasville, Georgia. “I love to see it.”</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><h2 class="gnt_ar_b_mt">How does the Market Based Cash Balance Plan work?</h2><p class="gnt_ar_b_p">A MBCBP can hold more retirement money than traditional retirement accounts because it’s not constrained by limits, said Nick Coleman, financial adviser at Bonfire Financial in Colorado Springs, Colorado.</p><p class="gnt_ar_b_p"><strong>Maximize your savings:</strong> <a target="_blank" target="_blank" rel="noopener" data-t-l=":body nav (hys)|e|auto spike click:6|${u}" class="gnt_ar_b_a" href="https://www.usatoday.com/money/blueprint/banking/savings/best-high-yield-savings-accounts/">Best high-yield savings accounts</a></p><p class="gnt_ar_b_p">Southwest automatically contributes 1% (2% starting in 2026) of a pilot’s salary into the MBCBP so all pilots, including the lowest paid, benefit. Once high-earning pilots reach the <a target="_blank" href="http://www.usatoday.com/story/money/2024/11/03/irs-401k-limits-2025-super-catch-up/75994341007/" target="_blank" rel="noreferrer noopener" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">401(k) contribution limits</a>, any excess...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/personalfinance/2024/12/12/southwest-pilots-retirement-plan-benefits/76888888007/">Read more <span>➤</span></a> </div>
