Qualified Student Loan Payment 401(k) Match Employer Terms & Conditions

Updated July 12, 2024

These Terms & Conditions govern the use by an employer of Betterment’s student loan services, which include employer matching of Qualified Student Loan Payments (“QSLPs”) in employee 401(k) accounts (“QSLP 401(k) Match”).

QSLP 401(k) Match

Betterment offers Employers, in their capacity as plan sponsors (“Plan Sponsors”), the ability to match qualified student loan payments pursuant to Section 110 of the SECURE 2.0 Act of 2022 (“Secure 2.0”) (such payments, “QSLP”) into their plan participants’ 401(k) accounts (the match, a “QSLP 401(k) Match”). Betterment supports such QSLP 401(k) Match pursuant to the terms and conditions described below (“QSLP 401(k) Match Terms”).

A. Scope of Services. Betterment’s QSLP 401(k) Match services include (i) prompting and soliciting self-certification from employees who wish to receive a match on their qualified student loan payments (“QSLP Participants”); (ii) providing Plan Sponsor with a list of self-certified student loan payment amounts; and (iii) calculating Plan Sponsor’s matching contribution pursuant to the matching formula elected by Plan Sponsor. 

B. QSLP Participant Self-Certification. 
i. While Betterment provides a mechanism for QSLP Participants to self-certify, Betterment is not responsible for the accuracy of self-certifications and does not verify any component of a QSLP Participant’s self-certification, including the certified payment amount, whether the payment was toward “Qualified” student loans (as defined under applicable laws and regulations), or whether the QSLP Participant was employed by Plan Sponsor at the time they made the payments reflected in their self-certification. If Plan Sponsor wishes to require substantiation of self-certified amounts, Plan Sponsor understands that Betterment does not provide this and that Plan Sponsor is responsible for establishing appropriate procedures. To the extent a QSLP Participant is also a Student Loan Management Employee utilizing Betterment’s Student Loan Management services (described above) to make repayments, such repayments are not considered in connection with the QSLP 401(k) Match services. 
ii. Betterment supports QSLP Participant self-certifications for the prior year through January 31 of the following year. Plan Sponsor understands that Plan Sponsor may be required to accept self-certifications after that date for purposes of obtaining a QSLP 401(k) Match. In particular, Plan Sponsor understands that if Secure 2.0 implementing regulations are passed that prescribe a cutoff date no earlier than March 31, Plan Sponsor will be required to accept self-certifications through that date. Plan Sponsor is responsible for and agrees to notify Betterment of any self-certifications that it receives subsequent to January 31, for purposes of plan administration and compliance testing.

C. Match Information. If Plan Sponsor elects to offer a QSLP 401(k) Match for the upcoming plan year, including a discretionary match or a safe harbor match, Plan Sponsor understands that Betterment may display information to Plan Sponsor’s employees regarding such QSLP 401(k) Match to facilitate employees’ planning with respect to their 401(k) deferrals and student loan payments. QSLP 401(k) Match must be made at the same rate and under the same vesting schedule as Plan Sponsor’s regular (i.e. non-QSLP) 401(k) matching contributions, and must only be made to employees who are otherwise eligible for regular matching contributions. QSLP 401(k) Match must be available to all employees who are eligible to receive regular matching contributions. Betterment supports QSLP 401(k) Match on an annual cadence only.

D. Amendments and Termination. These QSLP 401(k) Match Terms shall remain in effect for such time as Plan Sponsor is providing QSLP 401(k) Match services to its employees. Betterment reserves the right to make changes to the QSLP 401(k) Match services and/or amend these QSLP 401(k) Match Terms at any time in its sole discretion. Betterment may elect to terminate Plan Sponsor’s access to the QSLP 401(k) Match services at any time for any reason upon reasonable notice to Plan Sponsor. Plan Sponsor may elect to terminate the QSLP 401(k) Match services at any time upon reasonable notice to Betterment. Such termination will become effective at the beginning of the following plan year.