Emergency Savings Enhancement Act of 2025

This Act may be cited as the “Emergency Savings Enhancement Act of 2025”.

Section 801 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1193) is amended—

(1) by striking subsection (b) and inserting the following:

“(b) Eligible participant.— For purposes of this part, the term eligible participant, with regard to an individual account plan, means an individual who meets any age, service, and other eligibility requirements of the plan.”; and

(2) in subsection (d)—

(A) in paragraph (1)(A)(i), by striking “$2,500” and inserting “$5,000”; and

(B) in paragraph (3)(A)—

(i) in clause (vii), by adding “and” at the end;

(ii) in clause (viii), by striking “; and” and inserting a period; and

(iii) by striking clause (ix).

(a) Eligible participant.— Paragraph (2) of section 402A(e) of the Internal Revenue Code of 1986 is amended to read as follows:

“(2) Eligible participant.— For purposes of this subsection, the term “eligible participant”, with regard to a defined contribution plan, means an individual, without regard to whether the individual is otherwise a participant in such plan, who meets any age, service, and other eligibility requirements of the plan.”.

(b) Contribution limitation.— Clause (i) of section 402A(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking “$2,500” and inserting “$5,000”.

(c) Conforming amendment.— Subparagraph (A) of section 402A(e)(5) of the Internal Revenue Code of 1986 is amended by adding “and” at the end of clause (vii), by striking “; and” at the end of clause (viii) and inserting a period, and by striking clause (ix).

The amendments made by sections 2 and 3 shall apply to taxable years beginning after December 31, 2026.