New Year, New Rules

Vladimir Kouznetsov, EA, CFP®
Vladimir Kouznetsov, EA, CFP®

January 8, 2024

Your 2024 Retirement Playbook
2024 Retirement Plan Changes

As it often happens, the new year brings new rules. This time around, we have some good news for you, especially if you are planning to retire any time soon: the retirement planning landscape is getting a much-needed facelift in 2024, thanks to the SECURE 2.0 Act. Think of it as a financial fairy godmother for your future!

Automatic Enrollment: The No-Excuse Way to Save

Picture this: You're automatically enrolled in your employer's 401(k) plan. That's right, no more procrastination! Starting after Dec. 31, 2024, most new 401(k) and 403(b) plans will include you unless you say, "No thanks!" [1] It's like being signed up for a gym membership, but this one flexes your financial muscles. When you are done procrastinating, make sure to look at your new shiny plan and select investments that better fit your financial situation and risk tolerance.

Matching Student Loans with Retirement Savings

Got student loans? Who doesn't? But here's a twist: Employers can match your qualified student loan payments in your retirement account. It's like killing two birds with one dollar! For example, if your employer offers a 50% match and you make a $100 student loan payment, they'll contribute $50 to your retirement account. This free money can really add up over time. Check with your company to see when they add it to your plan. [2]

529 Plan Rollover into Roth IRA

There's now a beneficial twist for individuals with unused funds in their 529 college savings plans. Starting in 2024, up to $35,000 of these funds can be rolled over into a Roth IRA, providing a unique opportunity to transfer educational savings into retirement funds.[3] It's like your unused college funds saying, "Let's party in your retirement account instead!"

Tweaking the Timelines: RMDs and More

Remember those pesky required minimum distributions (RMDs)? Well, they've been pushed back, giving your money more time to grow.[4] RMD for those born from 1951 to 1959 now start at age 73 and for those born in 1960 or later, start at age 75.

Part-Time Perks and Emergency Cushions

Even part-timers get to join the retirement party now, with eligibility for 401(k) plans.[5] According to new rules, long-term part-time employees who worked more than 500 hours a year for over three years can participate in the plan. And for those unexpected bumps in the road, new emergency savings accounts linked to your pension plan will help you weather the storm without dipping into your retirement pot.[6]

Ready to Retire or Just Dreaming About It?

Whether you're counting down the days or years away, these changes are designed to make saving for retirement a little less daunting and a lot more doable. So, as you sip your morning coffee or plan your next vacation, take a moment to ponder: how will these changes shape your journey to a comfortable retirement?

We're here to guide you through these twists and turns, ensuring your path to retirement is as smooth as possible. Got questions or need a roadmap? Reach out, and let's make your retirement dreams a reality!

What's Your Next Move?

How do you plan to take advantage of these new rules? Are you ready to let automatic enrollment do the heavy lifting, or are you eyeing that 529 rollover into a Roth IRA? Share your thoughts and strategies – let's navigate this new retirement landscape together!

Vladimir Kouznetsov, EA, CFP®

January 8, 2024


This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.








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Vladimir Kouznetsov, EA, CFP® is an investment advisor representative at Retegy LLC.
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