Starting this year, a federal law allows employers to enroll workers in emergency savings accounts that are linked to their retirement accounts. “I do think there is tremendous interest in emergency savings programs,” said Matt Bahl, vice president and head of workplace financial health at the Financial Health Network, a nonprofit that promotes financial well-being. Of those, about a third said they offered an emergency savings account feature and another third planned to do so in the next year or two. For instance, only workers making under a certain income limit ($155,000 for 2024) may participate, and their emergency savings are limited to $2,500, though employers can set lower ceilings. And though employers can help with contributions, they must deposit any match into the worker’s retirement account — not the emergency savings account.

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Persons: ”, Matt Bahl, Mr, Bahl, — Organizations: Financial Health Network, Research Institute