To Fight Plan Leakage, Prudential Promotes After-Tax Savings
According to the firm, its new savings solution uses after-tax employee contributions to an existing retirement plan to build savings that can be accessed to cover emergencies.
Tag: emergency savings sidecar accounts
Addressing Plan Leakage with Sidecar Accounts
Bipartisan legislation has been introduced in the Senate to address retirement plan leakage; among the opportunities being discussed by industry stakeholders is the use of “sidecar” emergency savings accounts.
Package of Bills Addresses Retirement Plan Access and Emergency Savings Accounts
The bills would allow for pooled employer plans, incentivize employers to adopt plans with automatic enrollment; allow employers to automatically enroll their workers in emergency savings accounts; and make it easier for individuals to automatically save their tax refunds.