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The SECURE 2.0 Act was enacted in late 2022, but the comprehensive law included many future provisions that would become effective at different times. Along with various “Roth” opportunities that have become available, a lesser-known benefit for employers to establish Pension-Linked Emergency Savings Accounts (PLESAs), for their employees also became effective January 1, 2024.
PLESAs are made possible by employers adopting this provision within their 401(k) plan and are meant to assist employees with unforeseen expenses. The Department of Labor worked with the Department of the Treasury and the IRS to issue guidance recently in the form of FAQs to provide more information about this optional plan feature.
The general characteristics of PLESAs are as follows:
The full list of FAQs can be found on the Department of Labor’s website.
SECURE 2.0 has made changes to retirement plans and offered many options for employers to consider. You can review some of the recent developments and newly effective provisions here. If you are considering making changes to your retirement plan offerings based on the implementation of SECURE 2.0, please fill out the form on this page to connect with a retirement plan specialist from our tax practice.
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