T. ROWE PRICE LAUNCHES PENSION-LINKED EMERGENCY SAVINGS ACCOUNTS
T. Rowe Price has launched industry-first pension-linked emergency savings accounts (ESAs) for retirement plan participants, enabled by the SECURE 2.0 Act of 2022. The new feature allows non-highly compensated employees to save up to $2,500 for emergencies within their 401(k), 403(b), or 457(b) plans.
Key findings show that 64% of T. Rowe Price's 401(k) participants cannot cover six months of expenses. Industry projections indicate 70% of advisors expect increased adoption of in-plan solutions within 3-5 years.
The ESAs complement T. Rowe Price's existing emergency savings solutions, including an out-of-plan savings app and emergency expense withdrawals up to $1,000 penalty-free from retirement plans. Once participants reach the ESA limit, additional contributions automatically convert to non-ESA Roth retirement contributions.
T. Rowe Price ha lanciato i primi conti di risparmio d'emergenza (ESA) collegati alle pensioni nel settore, resi possibili dal SECURE 2.0 Act del 2022. Questa nuova funzione permette ai dipendenti non altamente compensati di risparmiare fino a 2.500 $ per emergenze all'interno dei loro piani 401(k), 403(b) o 457(b).
I dati principali mostrano che il 64% dei partecipanti al 401(k) di T. Rowe Price non riesce a coprire sei mesi di spese. Le previsioni del settore indicano che il 70% dei consulenti si aspetta un aumento dell'adozione di soluzioni integrate nei piani entro 3-5 anni.
Gli ESA integrano le soluzioni di risparmio d'emergenza già esistenti di T. Rowe Price, inclusa un'app di risparmio esterna al piano e prelievi per spese d'emergenza fino a 1.000 $ senza penali dai piani pensionistici. Quando i partecipanti raggiungono il limite ESA, i contributi aggiuntivi vengono automaticamente convertiti in contributi Roth per la pensione non ESA.
T. Rowe Price ha lanzado las primeras cuentas de ahorro de emergencia (ESA) vinculadas a pensiones en la industria, habilitadas por la Ley SECURE 2.0 de 2022. Esta nueva función permite a los empleados que no son altamente compensados ahorrar hasta 2,500 $ para emergencias dentro de sus planes 401(k), 403(b) o 457(b).
Los hallazgos clave muestran que el 64% de los participantes en 401(k) de T. Rowe Price no puede cubrir seis meses de gastos. Las proyecciones de la industria indican que el 70% de los asesores espera un aumento en la adopción de soluciones dentro del plan en los próximos 3-5 años.
Las ESA complementan las soluciones existentes de ahorro para emergencias de T. Rowe Price, incluyendo una aplicación de ahorro fuera del plan y retiros por gastos de emergencia de hasta 1,000 $ sin penalizaciones de los planes de jubilación. Una vez que los participantes alcanzan el límite de ESA, las contribuciones adicionales se convierten automáticamente en contribuciones Roth para la jubilación no ESA.
T. Rowe Price는 2022년 SECURE 2.0 법안에 힘입어 업계 최초로 연금 연계 비상 저축 계좌(ESA)를 은퇴 계획 참가자들을 위해 출시했습니다. 이 새로운 기능은 고소득자가 아닌 직원들이 401(k), 403(b), 또는 457(b) 플랜 내에서 비상시에 대비해 최대 2,500달러까지 저축할 수 있도록 합니다.
주요 조사 결과에 따르면 64%의 T. Rowe Price 401(k) 참가자들이 6개월치 생활비를 감당하지 못하는 것으로 나타났습니다. 업계 전망은 70%의 금융 상담사들이 향후 3-5년 내 플랜 내 솔루션 채택이 증가할 것으로 예상하고 있습니다.
ESA는 T. Rowe Price가 기존에 제공하던 비상 저축 솔루션을 보완하며, 플랜 외 저축 앱과 은퇴 플랜에서 최대 1,000달러까지 벌금 없이 비상 비용 인출이 가능합니다. 참가자가 ESA 한도에 도달하면 추가 납입금은 자동으로 ESA가 아닌 Roth 은퇴 기여금으로 전환됩니다.
T. Rowe Price a lancé les premiers comptes d’épargne d’urgence (ESA) liés aux pensions dans le secteur, rendus possibles par la loi SECURE 2.0 de 2022. Cette nouvelle fonctionnalité permet aux employés non hautement rémunérés d’économiser jusqu’à 2 500 $ pour les urgences au sein de leurs plans 401(k), 403(b) ou 457(b).
Les principales conclusions montrent que 64% des participants au 401(k) de T. Rowe Price ne peuvent pas couvrir six mois de dépenses. Les projections du secteur indiquent que 70% des conseillers anticipent une adoption accrue des solutions intégrées aux plans dans les 3 à 5 prochaines années.
Les ESA complètent les solutions d’épargne d’urgence existantes de T. Rowe Price, incluant une application d’épargne hors plan et des retraits pour dépenses d’urgence jusqu’à 1 000 $ sans pénalité des plans de retraite. Une fois que les participants atteignent le plafond ESA, les contributions supplémentaires sont automatiquement converties en contributions Roth retraite non ESA.
T. Rowe Price hat als Branchenführer Notfall-Sparkonten (ESA) eingeführt, die mit Rentenplänen verknüpft sind und durch das SECURE 2.0 Gesetz von 2022 ermöglicht werden. Die neue Funktion erlaubt es nicht hochbezahlten Mitarbeitern, bis zu 2.500 $ für Notfälle innerhalb ihrer 401(k)-, 403(b)- oder 457(b)-Pläne zu sparen.
Wesentliche Erkenntnisse zeigen, dass 64% der 401(k)-Teilnehmer von T. Rowe Price nicht sechs Monate Ausgaben decken können. Branchenprognosen gehen davon aus, dass 70% der Berater in den nächsten 3-5 Jahren eine verstärkte Nutzung von In-Plan-Lösungen erwarten.
Die ESAs ergänzen die bestehenden Notfall-Sparlösungen von T. Rowe Price, einschließlich einer außerplanmäßigen Spar-App und gebührenfreien Notfallabhebungen von bis zu 1.000 $ aus den Rentenplänen. Sobald Teilnehmer das ESA-Limit erreichen, werden zusätzliche Beiträge automatisch in nicht-ESA Roth-Rentenbeiträge umgewandelt.
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The in-plan emergency savings accounts, believed to be an industry first, allows retirement savers the ability to directly contribute to emergency savings
"As a leader in retirement, T. Rowe Price is proud to lead the charge in the industry with its in-plan emergency savings accounts," said Francisco Negrón, head of Retirement Plan Services at T. Rowe Price. "For many, emergency expenses can be a barrier to saving for retirement. ESAs expand our retirement plan offering and can give retirement savers more confidence about handling the unexpected while staying on the path toward a secure retirement."
T. Rowe Price recently found that
"Every retirement product T. Rowe Price brings to market is grounded in thoughtful research and a deep understanding of the evolving needs of retirement savers," said Dennis Elliott, head of Retirement Plan Services products and platforms at T. Rowe Price. "It is this commitment to insight-driven innovation that keeps us ahead of the curve and focused on providing solutions that can drive better retirement outcomes for our clients."
ESAs are the latest addition to T. Rowe Price Retirement Plan Services' suite of emergency savings solutions, including an out-of-plan savings app that allows employees the ability to save three to six months of expenses toward emergency savings. The firm also supports emergency expense withdrawals, which allow employees to withdraw up to
"Our mission at T. Rowe Price is simple: to meet the diverse needs of retirement savers by empowering them with choice and flexible solutions," said Michael Davis, head of Global Retirement Strategy for T. Rowe Price. "We hope this removes a point of stress in saving for retirement so that individuals can focus on the exciting possibilities of their retirement years."
ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW) helps individuals and institutions around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Clients rely on the award-winning firm for its retirement expertise and active management of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price serves millions of clients globally and manages US
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SOURCE T. Rowe Price Associates, Inc.
FAQ
What is the maximum amount allowed in T. Rowe Price's new emergency savings accounts (ESAs)?
How does SECURE 2.0 Act enable T. Rowe Price's emergency savings accounts?
What percentage of T. Rowe Price 401(k) participants lack adequate emergency savings?
What other emergency savings solutions does T. Rowe Price offer besides ESAs?
What happens when T. Rowe Price ESA participants exceed the $2,500 limit?
