What This Bill Does · Plain English
Summary · Congress.gov
Emergency Savings Enhancement Act of 2025 This bill expands eligibility and increases the maximum contribution limit for pension-linked emergency savings accounts (PLESAs). As background, PLESAs are savings accounts that are established and maintained in connection with a defined contribution retirement plan, such as a 401(k). Contributions to such accounts are subject to federal income tax, and withdrawals are allowed for any reason. The bill expands eligibility for PLESAs by eliminating the exclusion of highly compensated employees. Thus, under the bill, individuals who meet the age, service, and other eligibility requirements of the plan, regardless of compensation, are eligible to participate in such a plan. The bill also increases the maximum limit on the portion of a PLESA balance attributable to participant contributions to $5,000 (from $2,600 in 2026). This limit continues to be adjusted for inflation.
Action Timeline
2025-12-03
Introduced in House
2025-12-03
Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisd
2025-12-03
Introduced in House
Frequently Asked Questions
Did HR.6417 pass?
HR.6417 is still alive. Current stage: COMMITTEE. Pass likelihood: pending.
What does HR.6417 do?
Emergency Savings Enhancement Act of 2025 This bill expands eligibility and increases the maximum contribution limit for pension-linked emergency savings accounts (PLESAs). As background, PLESAs are savings accounts that are established and maintained in connection with a defined contribution retirement plan, such as a 401(k). Contributions to such accounts are subject to federal income tax, and withdrawals are allowed for any reason. The bill expands eligibility for PLESAs by eliminating the exclusion of highly compensated employees. Thus, under the bill, individuals who meet the age, service…
Who sponsored HR.6417?
HR.6417 was sponsored by Eugene Simon Vindman (D-Virginia).
Full Bill Text
Full text not yet indexed for this bill. Check Congress.gov for the official text.
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