IRS notice 2024-22 provides anti-abuse guidance to employers that offer the new pension-linked emergency savings accounts (PLESAs). The procedures are intended to prevent participants from manipulating rules to cause excessive matching contributions. According to the IRS, a reasonable policy balances PLESA participants’ interests with the plan sponsor’s interest in preventing manipulation of matching contribution rules. On the other hand, it’s generally unreasonable to forfeit contributions already made, suspend a participant’s PLESA use because of a withdrawal or suspend matching contributions to an underlying retirement savings account. For more information: https://bit.ly/3SQggFv
