The private letter ruling that allowed a certain 401(k) plan to allow the employer to make payments to a participant\u2019s student loan instead of a matching contribution piqued a lot of interest. But is it more hype than anything else? Perhaps, but people felt the same way about automatic enrollment too.<\/p>\n
While the decision by the Internal Revenue Service to allow it to a specific 401(k) plan doesn\u2019t open the floodgates to every 401(k) plan, it will likely lead to regulations that will allow this feature to all 401(k) plans.<\/p>\n
Will it become popular? Probably not because I think employers are slow to that take of features like that and many providers (especially advisors) have little interest in setting the feature up. However, I like choice and the more choices out there for plan sponsors to<\/a> help participants out and maybe get them more involved, is a good thing.<\/p>\n <\/span><\/p>","protected":false},"excerpt":{"rendered":" The private letter ruling that allowed a certain 401(k) plan to allow the employer to make payments to a participant\u2019s student loan instead of a matching contribution piqued a lot of interest. But is it more hype than anything else? … Continue reading