📅 2026 Update: Recent Changes in Personal Finance Law

Since the original article was written, there have been several important updates that could affect your personal finance planning. The SECURE 2.0 Act has brought notable changes to retirement accounts, impacting how you save and withdraw funds for your future. For those navigating their financial paths, these updates are essential for effective planning.

The earlier article continues further down the page, providing foundational information on budget planning and personal finance law. Here are the key updates that matter most for your financial decisions.

📈 SECURE 2.0 Act Changes

The SECURE 2.0 Act, enacted at the end of 2022, made significant adjustments to retirement savings rules. One major change is the increase in the Required Minimum Distribution (RMD) age. Individuals born between 1951 and 1959 must start RMDs at age 73, while those born in 1960 or later will begin at age 75.

This allows you more time to grow your retirement savings.

  • 🔄 RMD Penalty Reduction: The penalty for not taking an RMD has been lowered from 50% to 25% of the RMD amount. If you correct the mistake within two years, the penalty drops further to 10%.

🏦 Roth 401(k) Changes

As of 2024, RMDs are no longer required from Roth 401(k) accounts. This removal allows individuals to keep their funds invested longer without the pressure of mandatory withdrawals, potentially growing their savings even more.

📚 New Catch-Up Contributions

Starting January 1, 2025, individuals aged 60 to 63 can contribute up to $11,250 as catch-up contributions to their retirement accounts. This is a significant increase from the previous limit of $8,000, providing more flexibility for late savers.

🎓 529 Plan Rollovers

Beginning in 2024, individuals have the option to roll over up to $35,000 from their 529 college savings plans into a Roth IRA. This new provision opens up more avenues for using education savings for retirement.

📌 Key Updates Summary

  • 📅 RMD age raised to 73 and 75, depending on birth year.
  • 📉 RMD penalty reduced from 50% to 25%, with further reductions possible.
  • 🚫 No RMDs for Roth 401(k) accounts starting in 2024.
  • 💵 Increased catch-up contributions for older individuals starting in 2025.
  • 🎓 529-to-Roth IRA rollovers allowed up to $35,000 from 2024.

💡 Tips for Managing Your Finances

Reviewing your financial situation carefully is vital, and it may be helpful to discuss your individual circumstances with your attorney. Here are some practical tips for managing personal finances today.

🏦 Understand Your RMD Requirements

Make sure you know when to start taking your RMDs. If you were born between 1951 and 1959, you must start at age 73. Those born in 1960 or later must begin at age 75.

Missing these deadlines can lead to penalties.

📈 Consider Roth Accounts

Since Roth accounts no longer require RMDs, consider utilizing them in your retirement planning. This can help you maximize your investment growth by keeping your funds invested longer.

💰 Plan for Catch-Up Contributions

If you are between 60 and 63 years old, take advantage of the increased catch-up contribution limit of $11,250 starting in 2025. This can significantly enhance your retirement savings.

🎓 Explore 529 Plan Rollovers

If you have a 529 plan, consider the option to roll over funds to a Roth IRA. This can be a strategic move if you have leftover college savings and want to prepare for retirement.

📊 Monitor Your Savings Fees

Be aware of any fees associated with your retirement accounts, especially with 401(k) plans. High fees can eat into your returns, so compare options and consider rolling over to an IRA if necessary.

❓ Frequently Asked Questions

❓ What is the new RMD age?

The new RMD age is now 73 for individuals born between 1951 and 1959, and 75 for those born in 1960 or later.

💵 Can I avoid RMDs with Roth accounts?

Yes, RMDs are no longer required from Roth accounts in employer retirement plans starting in 2024.

🎓 How much can I roll over from a 529 plan?

You can roll over up to $35,000 from a 529 college savings plan to a Roth IRA starting in 2024.

📅 What are catch-up contributions?

Catch-up contributions allow individuals aged 60 to 63 to contribute an additional amount to their retirement plans. Starting in 2025, this limit will be $11,250.

🔄 What happens if I miss my RMD deadline?

If you miss your RMD deadline, you may face a penalty of 25% of the RMD amount, which can be further reduced if corrected within two years.

🏦 Where can I find free financial resources?

You can access free resources through the Consumer Financial Protection Bureau (CFPB), the Department of Labor (DOL), and the National Endowment for Financial Education (NEFE).

⚖️ Recent Court Cases in Personal Finance

In March 2026, a court vacated the Department of Labor's Retirement Security Rule, which aimed to define investment advice fiduciaries. This ruling impacts regulations around retirement planning and investment advice.

For the most current information, you can browse more rulings on the news page.

End of October 2026 Update





A budget planner is a tool, usually in the form of computer software that permits an individual, family, or business to see what their expenses are, plan for the future and retirement, and manage their budget to reduce unnecessary costs.


Most people have a basic grasp of what their spending habits are but at the end of the month they often wonder where certain money has gone to.  Where most people take into account large expenses like rent, utilities, car payments, and alike they often neglect to include minor daily expenses that add up over time.  They will neglect to include the daily $2 cup of coffee on the way to work and then wonder where the $60 went at the end of the month.

Budget Planner


A budget planner will help an individual maintain all their expenses, including minor ones that get lost in the shuffle.  Many good budget planning tools divide budgets into weekly, monthly, and yearly expenses.


When using a budget planning tool the first step is usually to input data from your daily expenses over a period of time.  This will give the budget planner the opportunity to compile information on your basic spending habits.  Over time the budget planner will have a collection of your regular expenses, regular income, cash assets and even your savings goals.


Your budget planner should start with your stable data.  This includes all stable income from your salary and other stable interest bearing assets such as bonds, income from rental property, and other cash inflow that is consistent over the month.  You should then have all data relating to expenses that are stable.  This includes rent, car payments, insurance, phone bill, cable bill and any others that will stay the same over a period of time.  


Once all this information is gathered you will know how much money you should have left over at the end of the month to spend and save on variable expenses.  It is then that you will divide what is left of your monthly income into budgeting sections.  This will include a utilities budget, entertainment budget, food budget, etc.  A good budget planner will also set aside a category for unexpected expenses such as car repairs.

When you are first using your budget planner it is important to include all your expenses on a daily basis.  Although a certain expense may seem trivial, or random, to you; by compiling the data on a daily basis over the course of a couple of months you will be able to find what expenses are trivial and which add up over time.  Before you use your budget planner you may not realize what you’re spending or what you’re spending it on.  A budget planner is a great tool for saving money and can help you eliminate unnecessary expenses that you didn’t even know you had.