Bill > HR6417

This bill modifies the rules for pension-linked emergency savings accounts by changing the definition of an "eligible participant" and increasing contribution limits. Specifically, the bill amends two key pieces of legislation: the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986. Under the new provisions, an eligible participant would be defined more broadly as any individual who meets the plan's age, service, and other eligibility requirements, regardless of their current plan participation status. The maximum contribution limit for these emergency savings accounts would be raised from $2,500 to $5,000, providing workers with greater flexibility to save for unexpected expenses. The bill also makes some technical changes to the existing language of these laws, such as removing certain clauses. These amendments would take effect for taxable years beginning after December 31, 2026, giving employers and financial institutions time to adjust their systems and policies to comply with the new requirements.

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https://www.congress.gov/bill/119th-congress/house-bill/6417/all-info