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Workplace Emergency Savings: Limit Rises to $5,000 and Eligibility Expands.

This legislation doubles the maximum amount employees can save in pension-linked emergency savings accounts (ESAs), raising the limit from $2,500 to $5,000. It also broadens the eligibility criteria, making it easier for more workers to access these accounts and build a financial cushion for unexpected expenses. These changes take effect starting with the 2027 tax year.
Key points
The maximum contribution limit for workplace emergency savings accounts (ESAs) increases from $2,500 to $5,000.
Eligibility rules are relaxed, allowing more employees to participate, regardless of their full participation in the main retirement plan.
The new rules apply to tax years beginning after December 31, 2026.
article Official text account_balance Process page
Introduced
Citizen Poll
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Additional Information
Print number: 119_S_3333
Sponsor: Sen. Young, Todd [R-IN]
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Emergency Savings Enhancement Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_3333.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

What are the main provisions?

Key points include:

  • The maximum contribution limit for workplace emergency savings accounts (ESAs) increases from $2,500 to $5,000.
  • Eligibility rules are relaxed, allowing more employees to participate, regardless of their full participation in the main retirement plan.
  • The new rules apply to tax years beginning after December 31, 2026.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Young, Todd [R-IN].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Labor Taxes