Help employees prepare for the unexpected—in and out of the plan
Life happens, but with intuitive emergency savings solutions, financial shocks don’t have to jeopardize employees’ retirement futures. We offer multiple solutions—both in plan and out of plan—giving sponsors the flexibility to build an experience tailored to their participant population and individual plan goals.
of Americans can’t cover a $400 emergency expense1
more likely to contribute to their defined contribution plan2
Smart automatic savings
T. Rowe Price’s Waysaver emergency savings app helps employees cover surprise expenses by building savings automatically, possibly avoiding the need to take retirement plan distributions.
Waysaver is an out-of-plan solution that works by analyzing an individual’s account for income and spending habits to determine how much they may be able to save each day. Over time, that little bit adds up to a lot, creating a safety net that can help keep them focused on the future and engaged with their plan.
Simple
Employees download the app, link their checking account, and start saving in an interest-bearing deposit account.
Intuitive
Waysaver estimates how much to save and when based on the user’s cash flow patterns.
Waysaver cannot guarantee that your checking account will not overdraft.
Convenient
An out-of-plan solution that builds emergency savings automatically in manageable daily amounts with easy access to cash.
Secure
Money in account is FDIC insured,3 and access to the app is provided with T. Rowe Price single sign-on authentication.
Making it easy to save for the unexpected
Modeled after the pension-linked emergency savings accounts (PLESAs) introduced in SECURE 2.0, our emergency savings accounts (ESAs) are an in-plan solution for participants’ unexpected expenses.
With these ESAs, employees can save up to $2,500 on a Roth basis and make tax- and penalty-free withdrawals—helping them overcome one of the biggest barriers to saving for retirement and helping sponsors achieve their plan goals.
Easy access to funds when they need it most
Emergency expense withdrawals can be a vital tool for participants facing financial shocks. This in-plan solution allows participants to withdraw up to $1,000 annually*—penalty free—to help cover unexpected expenses that might otherwise derail their long-term savings goals. Plus, the built-in repayment feature makes it easy for participants to repay the distribution directly or through contributions.
Important information
1 Source: Report on the Economic Well-Being of U.S. Households in 2023, Federal Reserve Board, May 2024.
2 Source: Commonwealth, DCIIA 2022. https://buildcommonwealth.org/research/emergency-savings-features-that-work-for-employeesearninglow-to-moderate-incomes.
3 T. Rowe Price is not a bank and is not FDIC-insured. Banking services are provided by The Bancorp Bank, N.A. Member FDIC. FDIC insurance coverage only protects against failure of an FDIC-insured bank. FDIC insurance for the Waysaver Account is available through The Bancorp Bank, N.A. and its sweep program banks. See the Waysaver Member Agreement for details.
* After a withdrawal, additional withdrawals are not permitted during the immediately following 3 full calendar years unless (1) the withdrawal has been repaid, or (2) subsequently, contributions have been made by the participant to the plan in an amount at least equal to the amount of the prior emergency expense withdrawal that has not been repaid.
The Waysaver Program is an optional emergency savings program that is available through a separate agreement with T. Rowe Price. While there is no fee for employers who elect this service, the Bank may charge a Program Fee against the Accounts.
T. Rowe Price is not a bank. Banking services are provided by The Bancorp Bank, N.A., Member FDIC.
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