T. Rowe Price has launched its in-plan emergency savings accounts for retirement plan participants.
The release comes as SECURE 2.0 legislation allows participants to save up to $2,500 towards emergency costs through an employer-sponsored 401(k), 403(b), or governmental 457(b) plan.
A recent T. Rowe Price survey found that 64% of 401(k) participants could not cover six months’ worth of emergency expenses. Other reports, like a 2024 study from Empower, shows that 37% of Americans cannot afford an emergency expense over $400.
“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,” said Francisco Negrón, head of Retirement Plan Services at T. Rowe Price.
The firm’s latest 2025 Retirement Market Outlook findings report that 70% of advisors and consultants expect a rise in in-plan solutions, and 52% say they expect to see growth in out-of-plan solutions within the coming three to five years.
Along with its latest in-plan emergency savings account solution, T. Rowe Price offers an out-of-plan savings app that allows employees to incorporate three to six months’ worth of expenses towards emergency savings. T. Rowe Price also allows participants to withdraw up to $1,000 in their retirement plan to be used in emergency situations, penalty-free.
“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.
T. Rowe Price manages $1.57 trillion in assets under management (AUM) as of March 31. More information on the firm’s in-plan emergency savings account solution can be found here.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.