Proposal to Enhance PLESAs Introduced in Senate

By ERISA News
| December 05 2025

Senators Cory Booker (D-NJ) and Todd Young (R-IN), along with Representatives Eugene Vindman (D-VA) and Glenn Thompson (R-PA) have introduced bi-cameral legislation, the Emergency Savings Enhancement Act. According to a press release, the bill would modify pension-linked emergency savings accounts (PLESAs) in the following ways.

  • Increase the maximum contribution limit from $2,500 to $5,000 to allow for greater emergency savings.
  • Expand eligibility to include all employees who otherwise meet a retirement plan's general requirements, eliminating the administrative burden of continuously monitoring eligibility requirements.

PLESAs were created under the SECURE 2.0 Act to provide an optional feature that can be added to a 401(k), 403(b), or governmental 457(b) plan beginning in 2024. Non-highly compensated employees who satisfy the age, service, and other eligibility requirements may contribute. Contribution amounts are based either on a participant election or on an automatic enrollment feature—and must be made to a PLESA Roth account.

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Defined contribution plan IRA Legislative updates