From Money Magazine:

In 2024, new federal legislation known as the SECURE 2.0 Act is set to bring about key changes in retirement planning by lowering barriers to putting money away for the future. This will allow modern workers to save for retirement while also covering their everyday expenses.

One of the two major provisions of SECURE 2.0 is the automatic 401(k) enrollment for workers in retirement savings plans. This is expected to expand the number of people enrolled in employer retirement plans, especially for lower-income workers, and can be changed according to the employee’s wishes.

Another significant provision allows employers to match qualified student loan repayments to help workers save for retirement. In addition, workers will be able to roll over leftover funds in their 529 college savings plans into Roth IRAs after 15 years.

SECURE 2.0 also raises the starting age for required minimum distributions (RMDs) and provides more flexible hardship distributions, reducing the penalty for early withdrawals. Employers are also required to allow part-time employees to participate in their 401(k) plans. Limitations to emergency savings fund have also been revised.



Read more: Retirement Saving Will Get Easier in 2024 Due to SECURE 2.0