Emergency Savings Enhancement Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Emergency Savings Enhancement Act of 2025 aims to increase the amount individuals can save in pension-linked emergency savings accounts. It modifies the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code to broaden eligibility and allow for larger contributions. Specifically, the bill raises the maximum contribution amount to $5,000 and expands who qualifies for these accounts. The changes will take effect starting in 2027.
Key provisions
- Increases the maximum contribution amount to $5,000.
- Expands eligibility for pension-linked emergency savings accounts.
- Modifies ERISA to define ‘eligible participant’ more broadly.
- Updates the Internal Revenue Code to align with expanded eligibility.
Who is affected
- Employees
- Pension plan participants
- Defined contribution plan participants
- Individuals saving for emergencies
Notable changes
- Raises the contribution limit from $2,500 to $5,000.
- Broadens the definition of ‘eligible participant’ in both ERISA and the Internal Revenue Code.
Bill text
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Sponsors
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2 on record
Primary sponsor
Cosponsor
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