Student Loan 401(k) Matches Could Still Trigger IRS Ire

Law360 (September 20, 2018, 7:46 PM EDT) -- The Internal Revenue Service made waves recently by clarifying that a 401(k) plan sponsor may provide matching employer contributions based on employees' student loan repayments, but such programs could still run afoul of regulations if they discriminate in favor of highly compensated employees.

The Internal Revenue Service recently addressed the policy challenge of student debt in the context of retirement planning. (AP) The private letter ruling, PLR-131066-17, was released in August and said offering student loan repayment nonelective contributions would not violate the “contingent benefit” prohibition of the tax code, which says a 401(k) plan may not condition any other benefit...

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