The IRS recently issued a private letter ruling approving a student loan repayment benefit within a retirement plan; ERIC wants this expanded to apply to all plan sponsors.
Tag: student loan repayment benefits
The OneAmerica survey examines other topics relating to participant financial wellness, including health care expenses and the use of health savings accounts as short- and long-term savings vehicles.
IonTuition finds more than half (52%) of respondents still owe more than $15,000 in student loans, and the year-over-year data shows the number of respondents with more than $30,000 in student loans actually increased over time compared to initial borrowing.
Because participants receiving a student loan repayment non-elective contribution can still make deferrals to the 401(k) plan and receipt of the contribution is not dependent on whether the employee makes deferrals to the plan, the IRS ruled the benefit will not violate the “contingent benefit” prohibition of the Income Tax Regulations.
One-third would sacrifice retirement benefits.
The SaaS firm has expanded its platform and initiated new partnerships to help employers easily roll out student loan refinancing as an employee benefit.