The IRS issued a ruling addressing a student loan repayment program that will amend the employer’s 401(k) plan. The employer currently contributes a matching contribution to its 401(k) plan equal to 5% of the employee’s eligible compensation if the employee made an elective deferral equal to 2% of compensation. Under this new ruling, the employee may elect to receive a nonelective contribution of 5% of compensation at the end of the year if the employee makes a student loan repayment equal to 2% of the employee’s salary per pay period. The nonelective contribution would be in lieu of the 401(k) matching contribution.