HR-6417 — Emergency Savings Enhancement Act of 2025

YourVoice.Now Summary

Your MoneyHigh-Earner Benefits

Workplace emergency savings accounts could hold $5,000 instead of $2,500, and highly paid workers could join.

Your Money

Workplace emergency savings limit — $2,500 to $5,000

If your employer offers an emergency savings account tied to its retirement plan, you could put up to $5,000 of your own money in it. Your employer can still pick a lower limit.

High-Earner Benefits

Highly paid workers' access to emergency savings accounts — starting 2027

Workers the tax code counts as highly paid cannot use these accounts today, and workers who become highly paid must stop adding money. The bill removes both limits.

More about this bill

If your job's 401(k)-style plan offers an emergency savings account, you could keep up to $5,000 of your own money in it. The limit today is $2,500. You can pull money out of these accounts at least once a month. The changes start in 2027. Highly paid workers, as the tax code defines them, could also join these accounts. Today they are shut out. Workers who become highly paid later would no longer have to stop adding money. Employers still choose whether to offer these accounts, and they can still set a lower limit.

Congressional Summary

Emergency Savings Enhancement Act of 2025 This bill expands eligibility and increases the maximum contribution limit for pension-linked emergency savings accounts (PLESAs). As background, PLESAs are savings accounts that are established and maintained in connection with a defined contribution retirement plan, such as a 401(k). Contributions to such accounts are subject to federal income tax, and withdrawals are allowed for any reason. The bill expands eligibility for PLESAs by eliminating the exclusion of highly compensated employees. Thus, under the bill, individuals who meet the age, service, and other eligibility requirements of the plan, regardless of compensation, are eligible to participate in such a plan. The bill also increases the maximum limit on the portion of a PLESA balance attributable to participant contributions to $5,000 (from $2,600 in 2026). This limit continues to be adjusted for inflation.

Legislative Subjects

Bank accounts, deposits, capitalEmployee benefits and pensionsIncome tax deferral

Details

Congress: 119th
Chamber: House
Status: summarized
Action: Introduced in House
Action Date: 2025-12-03
Date Added: 2026-09-28
Source: Congress.gov →

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