Disclaimer

The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.

 Skip to Content

Lowell Walters Authors Article on Employer Matched Contributions Based on Student Loan Repayments
October 15, 2018
Carlton Fields labor and employment attorney Lowell Walters authored an article for the Daily Business Review, "IRS Allows Employer Matching Contribution Based on Student Loan Repayment." The article reviews the recently released private letter ruling that permits employers to make matching contributions to employee 401(k) plans based on student loan repayments. 
 
The Internal Revenue Service has typically only allowed employers to make contributions to retirement plans if the employee voluntarily chose a salary deferral into the plan. 
 
Employees with student loan debt were required to comply with their repayment obligations before building their 401(k) plans for retirement. 
 
With the private letter ruling, employers are now able to make matching contributions not only to employees that defer a certain percentage of their salary, but also to any employees who make student loan payments in an amount that is at least equal to that same percentage of their compensation.
 
Walters concludes that though the new ruling may raise several issues that need clarification, it is a positive sign for employers and their employees burdened by student loans.
 
Read the article. 
 
Featuring
Image: Lowell J. Walters
Lowell J. Walters
Related Practices
Employee Benefits, Compensation & ERISA Labor & Employment