Are you interested in increasing the perceived value of the benefi ts you provide to your staff ? If so, the IRS has good news for you!

Recently, it released Private Letter Ruling 202434006 approving an employer’s program allowing employees to choose how to allocate an employer’s contribution among several different benefits. While the staffers couldn’t take the benefit in cash, they could choose at the beginning of each year to allocate their employer’s contribution among the 401(k) plan, their health savings account (HSA), student loan repayment, or a health reimbursement arrangement (HRA). If no choice was made, funds would automatically go into the employee’s retirement account where they would be fully (100%) vested. The contributions are taxdeductible to the practice and tax-free to the employees, up to the IRS maximums.*