Dear Eaton Educational Assistance Participant,
As part of our goal to maintain the continuity of this important benefit we continually review how the program is aligned to relevant government guidelines and policies. This important program update is to inform you of actions required to ensure that the program and its benefits are in compliance with current U.S. tax law.
Section 127 of the Internal Revenue Code currently allows an employee to receive from their employer up to $5,250 annually in tax-free educational assistance for undergraduate and graduate coursework. Benefits received above the annual IRS Limit of $5,250 must be treated as income received and taxed as such.
Please see the updated program policy for additional details on this important program update.