T. Rowe Price announced today the launch of in-plan emergency savings accounts (ESAs) for participants in retirement plans.
This ESA solution was made possible by the SECURE 2.0 Act of 2022, which includes a provision for pension-linked emergency savings accounts. This allows non-highly compensated employees to save up to $2,500 for emergency expenses within their 401(k), 403(b), or governmental 457(b) plans, if permitted by their plan.
Once participants reach the $2,500 limit, any additional contributions will be automatically converted to non-ESA Roth contributions for their retirement accounts.
