A Major Change Could Be Coming for This Workplace Benefit

New Rules

Employers may soon match more than just retirement contributions. 

Employer matching is a popular workplace benefit. Typically, it means companies match some or all of their employees’ contributions to common retirement plans, such as 401(k)s or SIMPLE IRAs. This free boost to retirement contributions can help workers reach their savings goals over time.But a new Internal Revenue Service (IRS) ruling could mean that this benefit could soon be available for more than just retirement plans — and workers could have a hand in determining where the extra money goes. 

What Changed?

The IRS ruling allowed an undisclosed company to offer its workers a unique version of the common match benefit: Employees at that company can now choose where employer contributions are directed: retirement plans, health savings accounts (HSAs), student loan payments, and retirement reimbursement accounts.The ruling currently applies only to the company in question, which specifically asked for a green light from the IRS. But it appears to open the door if other businesses want to follow suit.

Expanding Benefits

This type of benefit expansion could help employees receive financial assistance where it matters the most for them. Workers can still receive an employer match for their retirement plans, too, but the choice is in their hands.

Benefits are increasingly important for companies to attract and retain top talent. Having a bigger say about your benefits could play right into that, per a MarketWatch analysis. 

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