Years ago, legislation allowed a sidecar IRA account where participants could add an IRA contribution to their 401(k) plan. That was as popular as AfterMASH. Some provisions have been added over the years by Congress, that will not gain traction.

According to an MFS survey, about 45 percent of defined contribution plan sponsors say they’re considering implementing emergency savings features. The survey said 23 percent of plan sponsors said they’d take advantage of new rules under the Secure 2.0 Act that allow plan members to take out $1,000 from their retirement accounts once every three years with no distribution tax charge. 22 percent said they’ll introduce the ability to withdraw $2,500 from a separate in-plan emergency savings account and 16 percent are considering adding an option to match student loan payments.

While 45 percent think they will add that emergency savings, less than half will. I also think that when plan sponsors are told what they have to do, to offer it, a lot just won’t. It seems a lot of work for provisions with limited value. $2,500 isn’t much of an emergency if you ask me.