EMERGENCY SAVINGS ACCOUNTS LINKED TO INDIVIDUAL ACCOUNT PLANS.

SEC. 127. EMERGENCY SAVINGS ACCOUNTS LINKED TO INDIVIDUAL ACCOUNT PLANS.(a) Employee Pension Benefit Plans.—Section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002) is amended by adding at the end the following:“(45) Pension-linked emergency savings account.—The term ‘pension-linked emergency savings account’ means a short-term savings account established and maintained as part of an individual account plan, in accordance with section 801, 136 STAT. 5318 on behalf of an eligible participant (as such term is defined in section 801(b)) that—“(A) is a designated Roth account (within the meaning of section 402A of the Internal Revenue Code of 1986) and accepts only participant contributions, as described in section 801(d)(1)(A), which are designated Roth contributions subject to the rules of section 402A(e) of such Code; and “(B) meets the requirements of part 8 of subtitle B.” . (b) Pension-linked Emergency Savings Accounts.—(1) In general.—Subtitle B of title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021 et seq.) is amended by adding at the end the following:“PART 8—PENSION-LINKED EMERGENCY SAVINGS ACCOUNTS“SEC. 801. PENSION-LINKED EMERGENCY SAVINGS ACCOUNTS.“(a) In General.—A plan sponsor of an individual account plan may—“(1) include in such individual account plan a pension-linked emergency savings account meeting the requirements of subsection (c); and “(2)(A) offer to enroll an eligible participant in such pension-linked emergency savings account; or “(B) automatically enroll an eligible participant in such account pursuant to an automatic contribution arrangement described in paragraph (2) of subsection (c). “(b) Eligible Participant.—“(1) In general.—For purposes of this part, the term ‘eligible participant’, with regard to an individual account plan, means an individual who—“(A) meets any age, service, and other eligibility requirements of the plan; and “(B) is not a highly compensated employee. “(2) Eligible participant who becomes a highly compensated employee.—Notwithstanding paragraph (1)(B), an individual who is enrolled in a pension-linked emergency savings account and thereafter becomes a highly compensated employee may not make further contributions to such account, but retains the right to withdraw any account balance of such account in accordance with subsection (c)(1)(A)(ii). “(3) Definition.—For purposes of this subsection, the term ‘highly compensated employee’ has the meaning given the term in section 414(q) of the Internal Revenue Code of 1986. “(c) Account Requirements.—“(1) In general.—A pension-linked emergency savings account—“(A) shall—“(i) not have a minimum contribution or account balance requirement; “(ii) allow for withdrawal by the participant of the account balance, in whole or in part at the discretion of the participant, at least once per calendar month and for distribution of such withdrawal to the participant as soon as practicable from the date on which the participant elects to make such withdrawal; and136 STAT. 5319 “(iii) be, as selected by the plan sponsor, held as cash, in an interest-bearing deposit account, or in an investment product—“(I) designed to—“(aa) maintain over the term of the investment, the dollar value that is equal to the amount invested in the product; and “(bb) preserve principal and provide a reasonable rate of return, whether or not such return is guaranteed, consistent with the need for liquidity; and “(II) offered by a State- or federally-regulated financial institution; “(B) may be subject to, as permitted by the Secretary, reasonable restrictions; and “(C)(i) may not, for not less than the first 4 withdrawals of funds from the account in a plan year, be subject to any fees or charges solely on the basis of such a withdrawal; and “(ii) may, for any subsequent withdrawal in a plan year, be subject to reasonable fees or charges in connection with such a withdrawal, including reasonable reimbursement fees imposed for the incidental costs of handling of paper checks. “(2) Establishment and termination of account.—“(A) Establishment of account.—The pension-linked emergency savings account feature shall be included in the plan document of the individual account plan. Such individual account plan shall—“(i) separately account for contributions to the pension-linked emergency savings account of the individual account plan and any earnings properly allocable to the contributions; “(ii) maintain separate recordkeeping with respect to each such pension-linked emergency savings account; and “(iii) allow withdrawals from such account in accordance with section 402A(e)(7) of the Internal Revenue Code of 1986. “(B) Termination of account.—A plan sponsor may terminate the pension-linked emergency savings account feature of an individual account plan at any time. “(d) Account Contributions.—“(1) Limitation.—“(A) In general.—Subject to subparagraph (B), no contribution shall be accepted to a pension-linked emergency savings account to the extent such contribution would cause the portion of the account balance attributable to participant contributions to exceed the lesser of—“(i) $2,500; or “(ii) an amount determined by the plan sponsor of the pension-linked emergency savings account. In the case of contributions made in taxable years beginning after December 31, 2024, the Secretary shall adjust the amount under clause (i) at the same time and in the same manner as the adjustment made by the Secretary 136 STAT. 5320 of the Treasury under section 415(d) of the Internal Revenue Code of 1986, except that the base period shall be the calendar quarter beginning July 1, 2023. Any increase under the preceding sentence which is not a multiple of $100 shall be rounded to the next lowest multiple of $100. “(B) Excess contributions.—To the extent any contribution to the pension-linked emergency savings account of a participant for a taxable year would exceed the limitation of subparagraph (A)—“(i) in the case of a participant with another designated Roth account under the individual account plan, such plan may provide that—“(I) the participant may elect to increase the participant’s contribution to such other account; and “(II) in the absence of such a participant election, the participant is deemed to have elected to increase the participant’s contributions to such other account at the rate at which contributions were being made to the pension-linked emergency savings account; and “(ii) in any other case, such plan shall provide that such excess contributions will not be accepted. “(2) Automatic contribution arrangement.—For purposes of this section—“(A) In general.—An automatic contribution arrangement described in this paragraph is an arrangement under which an eligible participant is treated as having elected to have the plan sponsor make elective contributions to a pension-linked emergency savings account at a participant contribution rate that is not more than 3 percent of the compensation of the eligible participant, unless the eligible participant, at any time (subject to such reasonable advance notice as is required by the plan administrator), affirmatively elects to—“(i) make contributions at a different rate or amount; or “(ii) opt out of such contributions. “(B) Participant contribution rate.—For purposes of an automatic contribution arrangement described in subparagraph (A), the plan sponsor—“(i) shall select a participant contribution rate under such automatic contribution arrangement that meets the requirements of subparagraph (A); and “(ii) may amend (prior to the plan year in which an amendment would take effect) such rate not more than once annually. “(3) Disclosure by plan administrator of contributions.—“(A) In general.—With respect to an individual account plan with a pension-linked emergency savings account feature, the administrator of the plan shall, not less than 30 days and not more than 90 days prior to date of the first contribution to the pension-linked emergency savings account, including any contribution under 136 STAT. 5321 an automatic contribution arrangement described in subsection (d)(2), or the date of any adjustment to the participant contribution rate under subsection (d)(2)(B)(ii), and not less than annually thereafter, shall furnish to the participant a notice describing—“(i) the purpose of the account, which is for short-term, emergency savings; “(ii) the limits on, and tax treatment of, contributions to the pension-linked emergency savings account of the participant; “(iii) any fees, expenses, restrictions, or charges associated with such pension-linked emergency savings account; “(iv) procedures for electing to make contributions to or opting out of the pension-linked emergency savings account, for changing participant contribution rates for such pension-linked emergency savings account, and for making participant withdrawals from such pension-linked emergency savings account, including any limits on frequency; “(v) as applicable, the amount of the intended contribution to such pension-linked emergency savings account or the change in the percentage of the compensation of the participant of such contribution; “(vi) the amount in the emergency savings account and the amount or percentage of compensation that a participant has contributed to the pension-linked emergency savings account; “(vii) the designated investment option under subsection (c)(1)(A)(iii) for amounts contributed to the pension-linked emergency savings account; “(viii) the options under subsection (e) for the account balance of the pension-linked emergency savings account after termination of the employment of the participant or termination by the plan sponsor of the pension-linked emergency savings account; and “(ix) the ability of a participant who becomes a highly compensated employee (as such term is defined in paragraph (3) of subsection (b)) to, as described in paragraph (2) of such subsection, withdraw any account balance from a pension-linked emergency savings account and the restriction on the ability of such a participant to make further contributions to the pension-linked emergency savings account. “(B) Notice requirements.—A notice furnished to a participant under subparagraph (A) shall be—“(i) sufficiently accurate and comprehensive to apprise the participant of the rights and obligations of the participant with regard to the pension-linked emergency savings account of the participant; and “(ii) written in a manner calculated to be understood by the average participant. “(C) Consolidated notices.—The required notices under subparagraph (A) may be included with any other notice under this Act, including under section 404(c)(5)(B) or 514(e)(3), or under section 401(k)(13)(E) or 414(w)(4) of the Internal Revenue Code of 1986, if such other notice 136 STAT. 5322 is provided to the participant at the time required for such notice. “(4) Employer matching contributions to an individual account plan for employee contributions to a pension-linked emergency savings account.—“(A) In general.—If an employer makes any matching contributions to an individual account plan of which a pension-linked emergency savings account is part, subject to the limitations of paragraph (1)(A), the employer shall make matching contributions on behalf of a participant on account of the contributions by the participant to the pension-linked emergency savings account at the same rate as any other matching contribution on account of an elective contribution by such participant. The matching contributions shall be made to the participant’s account under the individual account plan that is not the pension-linked emergency savings account. Such matching contributions on account of contributions under paragraph (1)(A) shall not exceed the maximum account balance under paragraph (1)(A) for such plan year. “(B) Coordination rule.—For purposes of any applicable limitation on matching contributions, any matching contributions made under the plan shall be treated first as attributable to the elective deferrals of the participant other than contributions to a pension-linked emergency savings account. “(C) Matching contributions.—For purposes of subparagraph (A), the term ‘matching contribution’ has the meaning given such term in section 401(m)(4) of the Internal Revenue Code of 1986. “(e) Account Balance After Termination.—Upon termination of employment of the participant, or termination by the plan sponsor of the pension-linked emergency savings account, the pension-linked emergency savings account of such participant in an individual account plan shall—“(1) allow, at the election of the participant, for transfer by the participant of the account balance of such account, in whole or in part, into another designated Roth account of the participant under the individual account plan; and “(2) for any amounts in such account not transferred under paragraph (1), make such amounts available within a reasonable time to the participant. “(f) Anti-abuse Rules.—“(1) In general.—A plan of which a pension-linked emergency savings account is part—“(A) may employ reasonable procedures to limit the frequency or amount of matching contributions with respect to contributions to such account, solely to the extent necessary to prevent manipulation of the rules of the plan to cause matching contributions to exceed the intended amounts or frequency; and “(B) shall not be required to suspend matching contributions following any participant withdrawal of contributions, including elective deferrals and employee contributions, whether or not matched and whether or not made pursuant to an automatic contribution arrangement 136 STAT. 5323 described in section 402A(e)(4) of the Internal Revenue Code of 1986. “(2) Regulations or other guidance.—The Secretary of the Treasury, in consultation with the Secretary of Labor, shall issue regulations or other guidance not later than 12 months after the date of the enactment of the SECURE 2.0 Act of 2022 with respect to the anti-abuse rules described in paragraph (1). “SEC. 802. PREEMPTION OF STATE ANTI-GARNISHMENT LAWS. “Notwithstanding any other provision of law, this part shall supersede any law of a State which would directly or indirectly prohibit or restrict the use of an automatic contribution arrangement, described in section 801(d)(2), for a pension-linked emergency savings account. The Secretary may promulgate regulations to establish minimum standards that such an arrangement would be required to satisfy in order for this subsection to apply with respect to such an account. “SEC. 803. REPORTING AND DISCLOSURE REQUIREMENTS. “The Secretary shall—“(1) prescribe such regulations as may be necessary to address reporting and disclosure requirements for pension-linked emergency savings accounts; and “(2) seek to prevent unnecessary reporting and disclosure for such accounts under this Act, including for purposes of any reporting or disclosure related to pension plans required by this title or under the Internal Revenue Code of 1986. “SEC. 804. REPORT TO CONGRESS ON EMERGENCY SAVINGS ACCOUNTS. “The Secretary of Labor and the Secretary of the Treasury shall—“(1) conduct a study on the use of emergency savings from individual account plan accounts, including emergency savings from a pension-linked emergency savings account regarding—“(A) whether the amount of the dollar limitation under section 801(d)(1)(A) is sufficient; “(B) whether the limitation on the contribution rate under section 801(d)(2)(A) is appropriate; and “(C) the extent to which plan sponsors offer such accounts and participants participate in such accounts and the resulting impact on participant retirement savings, including the impact on retirement savings leakage and the effect of such accounts on retirement plan participation by low- and moderate-income households; and “(2) not later than 7 years after the date of enactment of the SECURE 2.0 Act of 2022, submit to Congress a report on the findings of the study under paragraph (1).” . (2) Clerical amendment.—The table of contents in section 1 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 note) is amended by inserting after the item relating to section 734 the following new items: “Part 8. Pension-linked Emergency Savings Accounts “801. Pension-linked emergency savings accounts. “802. Preemption of State anti-garnishment laws. “803. Reporting and disclosure requirements. “804. Report to Congress on emergency savings accounts.”. 136 STAT. 5324 (c) Reporting for a Pension-linked Emergency Savings Account.—(1) Alternative methods of compliance.—Section 110(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1030(a)) is amended by inserting “(including pension-linked emergency savings account features within a pension plan)” after “class of pension plans”. (2) Minimized reporting burden for pension-linked emergency savings accounts.—Section 101 of such Act (29 U.S.C. 1021) is amended—(A) by redesignating subsection (n) as subsection (o); and (B) by inserting after subsection (m) the following:“(n) Pension-linked Emergency Savings Accounts.—Nothing in this section shall preclude the Secretary from providing, by regulations or otherwise, simplified reporting procedures or requirements regarding such a pension-linked emergency savings account.” . (d) Fiduciary Duty.—Section 404(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(c)) is amended by adding at the end the following:“(6) Default investment arrangements for a pension-linked emergency savings account.—For purposes of paragraph (1), a participant in a pension-linked emergency savings account shall be treated as exercising control over the assets in the account with respect to the amount of contributions and earnings which are invested in accordance with section 801(c)(1)(A)(iii).” . (e) Tax Treatment of Pension-linked Emergency Savings Accounts.—(1) In general.—Section 402A is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection:“(e) Pension-linked Emergency Savings Accounts.—“(1) In general.—An applicable retirement plan—“(A) may—“(i) include a pension-linked emergency savings account established pursuant to section 801 of the Employee Retirement Income Security Act of 1974, which, except as otherwise provided in this subsection, shall be treated for purposes of this title as a designated Roth account, and “(ii) either—“(I) offer to enroll an eligible participant in such pension-linked emergency savings account, or “(II) automatically enroll an eligible participant in such account pursuant to an automatic contribution arrangement described in paragraph (4), and “(B) shall—“(i) separately account for contributions to such account and any earnings properly allocable to the contributions, “(ii) maintain separate recordkeeping with respect to each such account, and136 STAT. 5325 “(iii) allow withdrawals from such account in accordance with paragraph (7). “(2) Eligible participant.—“(A) In general.—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—“(i) meets any age, service, and other eligibility requirements of the plan, and “(ii) is not a highly compensated employee (as defined in section 414(q)). “(B) Eligible participant who becomes a highly compensated employee.—Notwithstanding subparagraph (A)(ii), an individual on whose behalf a pension-linked emergency savings account is established who thereafter becomes a highly compensated employee (as so defined) may not make further contributions to such account, but retains the right to withdraw any account balance of such account in accordance with paragraphs (7) and (8). “(3) Contribution limitation.—“(A) In general.—Subject to subparagraph (B), no contribution shall be accepted to a pension-linked emergency savings account to the extent such contribution would cause the portion of the account balance attributable to participant contributions to exceed the lesser of—“(i) $2,500; or “(ii) an amount determined by the plan sponsor of the pension-linked emergency savings account. In the case of contributions made in taxable years beginning after December 31, 2024, the Secretary shall adjust the amount under clause (i) at the same time and in the same manner as the adjustment made under section 415(d), except that the base period shall be the calendar quarter beginning July 1, 2023. Any increase under the preceding sentence which is not a multiple of $100 shall be rounded to the next lowest multiple of $100. “(B) Excess contributions.—To the extent any contribution to the pension-linked emergency savings account of a participant for a taxable year would exceed the limitation of subparagraph (A)—“(i) in the case of an eligible participant with another designated Roth account under the defined contribution plan, the plan may provide that—“(I) the participant may elect to increase the participant’s contribution to such other account, and “(II) in the absence of such a participant election, the participant is deemed to have elected to increase the participant’s contributions to such account at the rate at which contributions were being made to the pension-linked emergency savings account, and “(ii) in any other case, such plan shall provide that such excess contributions will not be accepted. “(4) Automatic contribution arrangement.—For purposes of this section—136 STAT. 5326“(A) In general.—An automatic contribution arrangement described in this paragraph is an arrangement under which an eligible participant is treated as having elected to have the plan sponsor make elective contributions to a pension-linked emergency savings account at a participant contribution rate that is not more than 3 percent of the compensation of the eligible participant, unless the eligible participant, at any time (subject to such reasonable advance notice as is required by the plan administrator), affirmatively elects to—“(i) make contributions at a different rate, or “(ii) opt out of such contributions. “(B) Participant contribution rate.—For purposes of an automatic contribution arrangement described in subparagraph (A), the plan sponsor—“(i) shall select a participant contribution rate under such automatic contribution arrangement which meets the requirements of subparagraph (A), and “(ii) may amend such rate (prior to the plan year for which such amendment would take effect) not more than once annually. “(5) Disclosure by plan sponsor.—“(A) In general.—With respect to a defined contribution plan which includes a pension-linked emergency savings account, the administrator of the plan shall, not less than 30 days and not more than 90 days prior to the date of the first contribution to the pension-linked emergency savings account, including any contribution under an automatic contribution arrangement described in section 801(d)(2) of the Employee Retirement Income Security Act of 1974, or the date of any adjustment to the participant contribution rate under section 801(d)(2)(B)(ii) of such Act, and not less than annually thereafter, shall furnish to the participant a notice describing—“(i) the purpose of the account, which is for short-term, emergency savings; “(ii) the limits on, and tax treatment of, contributions to the pension-linked emergency savings account of the participant; “(iii) any fees, expenses, restrictions, or charges associated with such pension-linked emergency savings account; “(iv) procedures for electing to make contributions or opting out of the pension-linked emergency savings account, changing participant contribution rates for such account, and making participant withdrawals from such pension-linked emergency savings account, including any limits on frequency; “(v) the amount of the intended contribution or the change in the percentage of the compensation of the participant of such contribution, if applicable; “(vi) the amount in the pension-linked emergency savings account and the amount or percentage of compensation that a participant has contributed to such account;136 STAT. 5327 “(vii) the designated investment option under section 801(c)(1)(A)(iii) of the Employee Retirement Income Security Act of 1974 for amounts contributed to the pension-linked emergency savings account; “(viii) the options under section 801(e) of such Act for the account balance of the pension-linked emergency savings account after termination of the employment of the participant; and “(ix) the ability of a participant who becomes a highly compensated employee (as such term is defined in section 414(q)) to, as described in section 801(b)(2) of the Employee Retirement Income Security Act of 1974, withdraw any account balance from a pension-linked emergency savings account and the restriction on the ability of such a participant to make further contributions to the pension-linked emergency savings account. “(B) Notice requirements.—A notice furnished to a participant under subparagraph (A) shall be—“(i) sufficiently accurate and comprehensive to apprise the participant of the rights and obligations of the participant with regard to the pension-linked emergency savings account of the participant; and “(ii) written in a manner calculated to be understood by the average participant. “(C) Consolidated notices.—The required notices under subparagraph (A) may be included with any other notice under the Employee Retirement Income Security Act of 1974, including under section 404(c)(5)(B) or 514(e)(3) of such Act, or under section 401(k)(13)(E) or 414(w)(4), if such other notice is provided to the participant at the time required for such notice. “(6) Employer matching contributions to a defined contribution plan for employee contributions to a pension-linked emergency savings account.—“(A) In general.—If an employer makes any matching contributions to a defined contribution plan of which a pension-linked emergency savings account is part, subject to the limitations of paragraph (3), the employer shall make matching contributions on behalf of an eligible participant on account of the participant’s contributions to the pension-linked emergency savings account at the same rate as any other matching contribution on account of an elective contribution by such participant. The matching contributions shall be made to the participant’s account under the defined contribution plan which is not the pension-linked emergency savings account. Such matching contributions on account of contributions to the pension-linked emergency savings account shall not exceed the maximum account balance under paragraph (3)(A) for such plan year. “(B) Coordination rule.—For purposes of any applicable limitation on matching contributions, any matching contributions made under the plan shall be treated first as attributable to the elective deferrals of the participant other than contributions to a pension-linked emergency savings account.136 STAT. 5328 “(C) Matching contributions.—For purposes of subparagraph (A), the term ‘matching contribution’ has the meaning given such term in section 401(m)(4). “(7) Distributions.—“(A) In general.—A pension-linked emergency savings account shall allow for withdrawal by the participant on whose behalf the account is established of the account balance, in whole or in part at the discretion of the participant, at least once per calendar month and for distribution of such withdrawal to the participant as soon as practicable after the date on which the participant elects to make such withdrawal. “(B) Treatment of distributions.—Any distribution from a pension-linked emergency savings account in accordance with subparagraph (A)—“(i) shall be treated as a qualified distribution for purposes of subsection (d), and “(ii) shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A). “(8) Account balance after termination.—“(A) In general.—Upon termination of employment of the participant, or termination by the plan sponsor of the pension-linked emergency savings account, the pension-linked emergency savings account of such participant in a defined contribution plan shall—“(i) allow, at the election of the participant, for transfer by the participant of the account balance of such account, in whole or in part, into another designated Roth account of the participant under the defined contribution plan; and “(ii) for any amounts in such account not transferred under paragraph (1), make such amounts available within a reasonable time to the participant. “(B) Prohibition of certain transfers.—No amounts shall be transferred by the participant from another account of the participant under any plan of the employer into the pension-linked emergency savings account of the participant. “(C) Coordination with section 72.—Subparagraph (F) of section 408A(d)(3) shall not apply (including by reason of subsection (c)(4)(D) of this section) to any rollover contribution of amounts in a pension-linked emergency savings account under subparagraph (A). “(9) Coordination with distribution of excess deferrals.—If any excess deferrals are distributed under section 402(g)(2)(A) to a participant, such amounts shall be distributed first from any pension-linked emergency savings account of the participant to the extent contributions were made to such account for the taxable year. “(10) Treatment of account balances.—“(A) In general.—Except as provided in subparagraph (B), a distribution from a pension-linked emergency savings account shall not be treated as an eligible rollover distribution for purposes of sections 401(a)(31), 402(f), and 3405. “(B) Termination.—In the case of termination of employment of the participant, or termination by the plan 136 STAT. 5329 sponsor of the pension-linked emergency savings account, except for purposes of 401(a)(31)(B), a distribution from a pension-linked emergency savings account which is contributed as provided in paragraph (8)(A)(i) shall be treated as an eligible rollover distribution. “(11) Exception to plan amendment rules.—Notwithstanding section 411(d)(6), a plan which includes a pension-linked emergency savings account may cease to offer such accounts at any time. “(12) Anti-abuse rules.—A plan of which a pension-linked emergency savings account is part—“(A) may employ reasonable procedures to limit the frequency or amount of matching contributions with respect to contributions to such account, solely to the extent necessary to prevent manipulation of the rules of the plan to cause matching contributions to exceed the intended amounts or frequency, and “(B) shall not be required to suspend matching contributions following any participant withdrawal of contributions, including elective deferrals and employee contributions, whether or not matched and whether or not made pursuant to an automatic contribution arrangement described in paragraph (4). The Secretary, in consultation with the Secretary of Labor, shall issue regulations or other guidance not later than 12 months after the date of the enactment of the SECURE 2.0 Act of 2022 with respect to the anti-abuse rules described in the preceding sentence.” . (2) Treatment for purposes of additional tax on early distributions.—Section 72(t)(2), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subparagraph:“(J) Distributions from pension-linked emergency savings account.—Distributions from a pension-linked emergency savings account pursuant to section 402A(e).” . (3) Basis recovery.—Section 72(d) is amended by adding at the end the following new paragraph:“(3) Treatment of contributions to a pension-linked emergency savings account.—For purposes of this section, contributions to a pension-linked emergency savings account to which section 402A(e) applies (and any income allocable thereto) may be treated as a separate contract.” . (f) Regulatory Authority.—The Secretary of Labor and the Secretary of the Treasury (or a delegate of either such Secretary) shall have authority to issue regulations or other guidance, and to coordinate in developing regulations or other guidance, to carry out the purposes of this Act, including—(1) adjustment of the limitation under section 801(d)(1) of the Employee Retirement Income Security Act of 1974 and section 402A(e)(3) of the Internal Revenue Code of 1986, as added by this Act, to account for inflation; (2) expansion of corrections programs, if necessary; (3) model plan language and notices relating to pension-linked emergency savings accounts; and (4) with regard to interactions with section 401(k)(13) of the Internal Revenue Code of 1986.136 STAT. 5330 (g) Effective Date.—The amendments made by this section shall apply to plan years beginning after December 31, 2023.