Last week, the IRS green-lighted a new benefit offering from Abbot Laboratories that allows participants in the company's 401(k) plan to earn the employer match of 5 percent when they defer 2 percent of salary to service student loan debt. (Photo: Shutterstock)
A trade organization that lobbies on behalf of large plan sponsors of defined contribution plans is urging the IRS to extend a recent private letter ruling to all qualified plans.
Last week, the IRS greenlighted a new benefit offering from Abbot Laboratories that allows participants in the company's 401(k) plan to earn the employer match of 5 percent when they defer 2 percent of salary to service student loan debt.
In June, Abbott, which sponsors a defined contribution plan with $6.3 billion in assets and 29,000 active participants, implemented its “Freedom 2 Save” program, enabling employees that qualify for the 401(k) plan to earn the company match even if they don't defer the required 2 percent of salary to the plan.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
