Scenario 1 Scenario 2
Compensation $100,000 $100,000
401(k) deferral rate 5% 5%
401(k) employee contribution $10,000 $2,000
Qualified student loan payments $10,000 $10,000
Employer match on qualified student loan payments $0 $3,000
Total employer match $5,000 $5,000
Total 401(k) contribution (employee + employer) $15,000 $7,000
Disclosure Title
Source
Disclosure

Schwab Center for Financial Research. For illustrative purposes only.