But I don’t think there’s been enough attention given to America’s emergency fund crisis. So why haven’t employers helped with a solution by offering automatic payroll deduction emergency savings plans the way they do for retirement with 401(k)s? What the Law Doesn’t SayFederal law explicitly permits retirement plans such as 401(k)s; the very name 401(k) refers to a section of the Internal Revenue Service (IRS) code. But there’s no such section for emergency fund plans. Call it the Catch-22 of emergency savings: Putting money away for a rainy day can keep low-income Americans from receiving some government benefits.

Source: Forbes December 01, 2016 17:13 UTC