🆕 🚨 IRS Releases Guidance on Employer Matching Contributions for Employee Student Loan Payments
Employers: Have you considered offering this benefit to your employees with student loans? Review this update from our HR Compliance team for the latest...
UPDATE:
On August 19, 2024, the IRS released interim guidance relative to an employer’s matching contributions on account of employees’ qualified student loan payments (QSLPs) for certain retirement plans under section 110 of the Secure 2.0 Act.
The new guidance addresses several topics to assist employers including:
🔵 Types of eligible retirement plans which may include a QSLP match feature
🔵 Definition of QSLPs
🔵 Certification requirements for payments
🔵 Reasonable student loan matching contribution procedures which plans may adopt
🔵 Frequency of QSLP matches by employers
"While this provision went into effect for contributions for plans years beginning after December 31, 2023, many employers were awaiting further IRS guidance before considering offering this optional feature to their workforces," says Megan Butz, General Counsel for HR Compliance at Checkwriters.
"For employees, this feature may assist them in saving for retirement while prioritizing their student loan payments. For employers, offering this feature may help employers attract and retain younger talent."
📋 💲 There will be some additional costs and responsibilities associated with implementation for employers to consider including plan amendments, administrative and operational costs in tracking QSLPs, recordkeeping, employee communication and engagement, and potentially higher overall contribution expenses as a result of increased employee participation.
Full IRS Guidance: https://lnkd.in/eyMkub68
Internal Revenue Service #HR #HRCompliance #Payroll