Emergency Savings Enhancement Act of 2025

This bill increases the annual contribution limit for certain retirement accounts from $2,500 to $5,000 under the Internal Revenue Code. It applies directly to individuals participating in defined contribution retirement plans (like 401(k)s) who meet basic eligibility requirements, including those not yet enrolled. The key change modifies tax rules to allow higher contributions toward emergency savings within these plans. The amendments take effect for tax years beginning after December 31, 2026. The bill does not create new programs but adjusts existing contribution limits and definitions.