Do you have a PLESA?

These are pension-linked emergency savings accounts (PLESAs) that can be set up as part of a 401(k) plan. The accounts enable non-highly compensated employees (those earning no more than $150,000 in 2024) to create a designated Roth account up to $2,500 (or a lesser amount set by the plan) that can be tapped penalty free at the employee’s direction, at least once a month. The IRS and the DOL issued guidance explaining PLESAs. The guidance addresses such matters as matching contributions and anti-abuse procedures. #IdeaoftheDay