Student loan repayments not only burdening younger employees

Student loan repayments not only burdening younger employees


Nearly 75% of student loan borrowers expect that resuming payments will impact their ability to save for retirement, new data shows.

Student loan borrowers, on average, will experience an additional $400 monthly hit to their wallets, as federal loan repayments resume on October 1 after being on pause for three years during the COVID-19 pandemic.

Corebridge Financial found that:

  • 75% said resuming student debt payments will impact their ability to save for retirement.
  • 29% plan to reduce their emergency savings. 
  • 52% do not think they will be able to afford student loan payments in October.

Also, a new Nationwide study found that while many assume younger employees are impacted the most by student loans, more than one in 10 employees aged 45 and older currently have student loan debt.

Of which:

  • 61% agree that the reinstatement of student loan repayments has negatively impacted their financial stability and long-term planning. 
  • 29% are planning to adjust their retirement plan contributions in order to keep up with their student loan payments.


What can plan sponsors do?

  • Partner with your financial advisor to educate employees about budgeting. 
  • Contact your recordkeeper about their existing financial wellness programs and ways to promote them.
  • Communicate regularly with employees about their financial needs.

If you’d like more ideas about helping to address participant concerns, reach out to your SRC account representative.
–Chris Oneal, President, Stones River Consulting


IRS Extends Roth Catch-Up Contribution Deadline in SECURE 2.0 Legislation

In late August, the IRS announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher income participants in 401(k) plans must be designated as after-tax Roth contributions.

A large number of retirement industry organizations—including prominent lobbying groups and 401(k) recordkeepers—called for the government to delay this key SECURE 2.0 change that was set to start Jan. 1, 2024, that would have caused many 50-and-older retirement plan participants to lose the ability to make catch-up contributions.

SRC has created a handy guide on the most important provisions affecting retirement plans.

Download the guide here>>

If you have any questions about SECURE 2.0 and its provisions, please reach out to your Stones River Consulting consultant.

Important Deadlines to Remember



  • 15: Final Filing Deadline for 2022 Form 5500. After this date Plan Sponsors are subject to filing correction program resulting in additional fees/penalties.
  • 15: IRS deadline for adopting a retroactive amendment to correct a 410 (b) Coverage or 401(a)(4) Nondiscrimination failure. (TPA, Plan Sponsor)
  • 15: Deadline to remit Employer Contributions for C Corps and Sole Proprietors on tax extension in order to take tax deduction. (TPA, Plan Sponsor)
  • 15: Deadline to adopt a profit sharing plan for 2023 for C Corps or Sole Proprietors with tax return extension. (TPA, Plan Sponsor)


  • 1: Begin reviewing and gathering required Annual Notices to distribute to all eligible participants before December 1st. (Plan Sponsor, Advisor, TPA, Recordkeeper)
  • 30: Deadline to convert existing 401(k) Plan to Safe Harbor plan using 3% nonelective contribution. (TPA, Plan Sponsor)

Download the full 2023 compliance calendar.,


7 Signs Your Retirement Plan Needs an Upgrade

Retirement plans can be very complex if plan sponsors don’t have the right partner by their side to help navigate the ins and outs.

Stones River Consulting created a new guide titled, 7 Signs Your Retirement Plan Needs an Upgrade, that helps plan sponsors understand:

  • What the four critical areas of a retirement plan are that need to be properly managed to maintain a successful retirement plan.
  • Warning signs that a plan may be in danger of falling outside of compliance.
  • How to get help to maintain a compliant retirement plan that benefits both the plan sponsor and its employees.

To request this guide, click here>>



If you have any questions or would like a complimentary retirement plan analysis, click here>>