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Federal Employment Law Update – August 2018 | Tampa Benefit Advisors

August 27, 2018

IRS Permits Student Loan Repayment Benefit as Part of Employer’s 401(K)

On August 17, 2018, the federal Internal Revenue Service released a private ruling letter (Number 201833012) concluding that an employer may amend its 401(k) plan to provide student loan repayments (SLR) nonelective contributions under the program without violating the “contingent benefit” prohibitions of 26 U.S.C. § 401(k)(4)(A) and § 1.401(k)-1(e)(6).

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