A private letter ruling from the IRS on one employer’s effort to address student debt through its defined contribution plan could wind up spurring more plan sponsors to follow suit.
Helping employees manage growing levels of student loan debt falls under a broader effort among employers to promote employee financial wellness, which can enhance retirement outcomes, benefit experts said. Employers also see a focus on student debt as way to attract and retain younger workers.
In discussions about financial wellness, “the key trend is the tremendous amount of growth in student loan debt. (The IRS action) points plan sponsors to the fact that this is something that’s worth their attention, not just in the 401(k) …
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