H.R. 6417 — Emergency Savings Enhancement Act of 2025

This section revises the definition of eligible participant for pension-linked emergency savings accounts (i.e., optional features in individual account plans such as 401(k)s that allow low-barrier emergency savings with penalty-free withdrawals) to include all individuals meeting the plan's age, service, and other eligibility requirements (previously excluding highly compensated employees, generally those earning above approximately $155,000 in 2024). It also increases from $2,500 to $5,000 the fixed-dollar cap used to determine the maximum account balance under subsection (d)(1)(A)(i) and makes conforming changes to subsection (d)(3)(A) by striking clause (ix).

This section amends rules for pension-linked emergency savings accounts (PLESAs)—separate Roth subaccounts within employer-sponsored defined contribution plans for short-term emergency savings—by (1) revising the definition of eligible participant to include any individual meeting the plan's age, service, and other eligibility requirements, regardless of whether the individual is otherwise a participant in the plan; (2) increasing the annual contribution limit to $5,000 (from $2,500); and (3) making conforming amendments to the provision coordinating PLESA contributions with other plan contributions.