New Twist on Education Benefits: IBM to Launch "Learning Accounts"

IBM is looking to launch a new kind of education benefit; a 401(k)-type program that will fund accounts employees can use for professional education, according to an article in this month's CFO magazine. 

According to the article:

IBM's proposed "learning accounts" would allow U.S.-based employees with five years of service to contribute up to $1,000 a year, with IBM matching 50 cents on the dollar.  The program doesn't begin until next July, which will give IBM time to pursue another wrinkle: getting the government to pony up a tax break by making contributions exempt from income taxes, a la 401(k) plans.  Rep. Rahm Emanuel (D-Ill) has already proposed such legislation and IBM is bringing its lobbying powers to bear.

IBM will continue to spend $600 million a year on tuition reimbursement, but says this new option is needed so that "our employees get an expanded skill-set to be effective in a global economy," says Stanley Litow, vice president of corporate citizenship and corporate affairs.  "People need training for the jobs that may exist in the future."

Comments

[Wally Bock]

I really like the idea of this, especially if there can be a tax benefit for it. The government will surely get its benefit either in increased income tax revenue or decreased retraining costs.

[Ann Bares]

Wally:

I agree - let's hope the idea can get some traction!

Thanks for the comment!