- Which have increasing education loan debt pushing employees so you’re able to reduce contributing to its employers’ 401(k) agreements, many employers was indeed searching for ways to help their employees save yourself for old age.
- A current Internal revenue service (IRS) Personal Letter Ruling might provide one strategy having employers and also make a share to 401(k) plans toward a keen employee’s part if the a particular part of the fresh employee’s compensation is used getting paying off his or her student loan obligations.
- While it is certainly greet information, companies need think a number of other activities within the is useful in their mind.
That have increasing student loan loans pressing teams to help you reduce adding to the employers’ 401(k) agreements (along with delaying biggest lives incidents for example to acquire a good home, bringing ily), of many employers was indeed researching ways to assist their employees help save for retirement. You to proposed method is getting companies and also make a share to help you 401(k) preparations towards an enthusiastic employee’s part when the a certain percentage of the fresh new employee’s compensation is utilized getting paying off their particular student loan debt.
A recently available Internal revenue service (IRS) Personal Letter Ruling surmounts you to definitely understood court hurdle.