Few Employers Link 401(k) Plans to Emergency Savings Under Secure 2.0
A Vanguard analysis finds only about 4% of 401(k) plans permit the $1,000 emergency withdrawal under Secure 2.0, and pension-linked emergency savings accounts have attracted little employer interest. Many firms instead offer external emergency savings funded through payroll deductions, as in-plan options face administrative hurdles and a highly compensated employee exclusion. Legislation like the Emergency Savings Enhancement Act would widen eligibility and raise the contribution limit, but adoption remains limited as employers weigh complexity against easier external solutions.