IRS Plans Guidance on Student Loan, 401(k) Contributions (Correct)

The Internal Revenue Service plans to issue guidance on allowing employers to count student loan payments in matching 401(k) contributions, an agency official said.

The IRS is still looking at how the guidance would apply to employer contributions, and how discrimination rules would work, said Stephen Tackney, deputy associate chief counsel of the IRS Office of Chief Counsel for employee benefits, said Wednesday at the virtual tax law conference hosted by the Federal Bar Association.

• There has been a push to allow student loan payments to count when employers make contributions to defined contribution plans like 401(k)s. Young adults contribute ...