March 19, 2019
"401(k)-Based Student Loan Repayment Program: A New IRS Private Letter Ruling Released"
Student-loan debt is a major concern for many Americans. And for many, it’s a barrier to contributing to a defined contribution (DC) plan at work.
Employers have been looking for ways to help their employees deal with their student loans, and are also seeking ways to encourage participation in DC plans.
A new Private Letter Ruling (PLR) from the Treasury Department and the IRS provides a narrow path to using 401(k) plans to provide financial assistance to employees who are repaying student loans.
Like all PLRs, it is technically only applicable to the company that received it.
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