Compliance Stuff

The Internal Revenue Service has released updated frequently asked questions addressing educational assistance programs under Section 127 of the Internal Revenue Code, along with a revised sample plan document, Publication 5993 (Rev. 4-2026). The updated guidance represents changes made by the One Big Beautiful Bill of 2025, providing clarification for employers that offer—or are considering offering—tuition assistance or student loan repayment benefits. Chance to Revamp : The updated guidance, reformed by the One Big Beautiful Bill , gives employers a timely opportunity to modernize Section 127 programs, including by revising plan documents, expanding or formalizing student loan repayment features, and reassessing compliance with notice and nondiscrimination requirements. Section 127 permits employers to provide certain educational benefits to employees on a tax-free basis through a written educational assistance program. Employees may currently exclude up to $5,250 per year from gro...