Contribution limitation

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.

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.