"2024 Retirement Savings Revolution: Planning, Policy Shifts, and New SECURE 2.0 Act Insights"

1 min read
Source: Lifehacker
"2024 Retirement Savings Revolution: Planning, Policy Shifts, and New SECURE 2.0 Act Insights"
Photo: Lifehacker
TL;DR

Retirement planning in 2024 sees significant changes with increased contribution limits for IRAs and 401(k)s, the ability to convert 529 plans to Roth IRAs, penalty-free emergency withdrawals, and the introduction of Starter 401k plans for small businesses. The new IRA and 401(k) contribution limits are $7,000 and $23,000, respectively. Unused 529 plan funds can now be rolled over into a Roth IRA for the beneficiary without penalty, given certain conditions. Individuals can make a $1,000 emergency withdrawal from their retirement accounts without a penalty, and victims of domestic abuse can withdraw up to $10,000. Starter 401k plans aim to make it easier for small businesses to offer retirement benefits. These changes necessitate updated retirement strategies and possibly consulting a financial advisor.

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