PENSION-LINKED EMERGENCY SAVINGS ACCOUNTS
01.Core Concepts
(PLESAs) (2 of 2) • Funds must be invested to preserve principal with reasonable return • Distributions available at least once per month • No penalty if under the age 59½ • Advantage of using PLESA versus saving emergency funds in a traditional bank savings account • PLESA contribution treated as a retirement plan contribution on which the employer provides a match • Matching contributions are made to the employee’s retirement plan account (not the PLESA account) • No additional contributions are accepted once the account balance reaches the maximum