Employee Education - Income Taxation

[Guest JD Colville]

I am looking for citations relating to the income taxation of employer provided investment education. How much investment education can an employer provide before it becomes a taxable benefit to employees? Is there a non-discrimination requirement?

Thanks, JD Colville

[Dave Baker]

Interesting! Would this be education regarding investments in the employer-sponsored 401(k) plan, or financial planning in general?

[Guest]

I think financial planning services are taxable income to an employee.

[Guest Chuck Miller]

I've never heard of such a thing... and no one I know has ever heard of such a thing...

How did you get this information?

Investment Education is not seen by the IRS as an employee benefit... Both the IRS and DOL see IE as an absolute necessity...They want participants to get as much investment education as possible... even get investment advice if necessary...

[Guest JD Colville]

Dave: Thank you for your clarification, and Chuck, I agree with you - to a point. The demarcation between investment education and financial planning may be clearer to you than it is to me. What I am looking for is some guidance as to when employer provided advisory/consulting activities cross the line, and what, if any, are the income tax consequences to employees. Any assistance is greatly appreciated. Thanks,

JD Colville

[Guest Chuck Miller]

There are no consequences that I know of if the same education/advice is offered to all employees.

I am not sure how the IRS feels about giving education/advice to a small class of employees, i.e. top execs.