📅 2026 Update: Recent Changes in Retirement Regulations

Since the original article on Earnings Per Share, several important changes have taken place in personal finance and retirement savings rules. These updates directly impact how individuals manage their retirement accounts and plan for the future. The earlier article continues further down the page, covering foundational aspects of earnings and investments.

🏦 SECURE 2.0 Act Implementation

The SECURE 2.0 Act, enacted at the end of 2022, has made significant updates to retirement savings. The age for Required Minimum Distributions (RMD) has been raised to 73 for those born between 1951 and 1959. For individuals born in 1960 or later, the RMD age will rise to 75 starting in 2033.

  • 🔍 RMD Penalty Reduction: The penalty for missing an RMD has dropped from 50% to 25%. If an individual corrects the missed RMD within two years, the penalty further decreases to 10%.

💵 Roth 401(k) RMD Exemption

Starting in 2024, individuals will no longer need to take RMDs from Roth accounts within employer retirement plans, like 401(k)s and 403(b)s. This change allows for more flexibility in managing retirement funds without the pressure of mandatory withdrawals.

📈 Catch-Up Contribution Increases

Beginning on January 1, 2025, individuals aged 60 to 63 can make larger catch-up contributions of $11,250 to their retirement plans. This amount is an increase from the previous limit of $8,000, providing more savings opportunities for those nearing retirement.

🎓 529-to-Roth IRA Rollovers

From 2024, individuals can roll over up to $35,000 from 529 college savings plans to a Roth IRA. This change allows for greater flexibility in how educational savings can be utilized for retirement.

🏥 Emergency Withdrawals

Starting in 2024, people can withdraw up to $1,000 per year from their retirement accounts for emergencies without facing the 10% early withdrawal penalty. This option provides a safety net for unexpected expenses, with the possibility to repay the amount within three years.

📌 Key Points Summary

  • 🔸 RMD age raised to 73 or 75.
  • 🔸 RMD penalty reduced to 25% or 10% if corrected.
  • 🔸 Roth accounts exempt from RMDs starting 2024.
  • 🔸 Increased catch-up contributions for those aged 60 to 63.
  • 🔸 529 plans can rollover to Roth IRAs starting 2024.

💡 Tips for Managing Retirement Accounts

Review your situation carefully with your attorney to understand how these changes may impact you.

📋 Understand RMD Requirements

Be aware of the new RMD rules. Individuals born between 1951 and 1959 must take their first RMD by April 1 of the year they turn 73. Those born in 1960 or later must do so by April 1 of the year they turn 75.

💰 Consider Catch-Up Contributions

If you are aged 60 to 63, consider increasing your contributions to your retirement plan up to $11,250 starting in 2025. This can significantly boost your retirement savings as you approach retirement age.

🎓 Utilize 529-to-Roth IRA Rollovers

If you have leftover funds in a 529 college savings plan, explore the option of rolling over up to $35,000 to a Roth IRA. This can help you maximize your retirement savings while also utilizing educational funds effectively.

🔄 Review Plan Fees

Examine the fees associated with your 401(k) or IRA. High fees can eat into your savings, so consider rolling over to a lower-cost option if necessary. Comparing different providers can help you find the best fit.

🏥 Prepare for Emergencies

Keep in mind that starting in 2024, you can withdraw up to $1,000 from your retirement account for emergencies without facing a penalty. This flexibility can provide peace of mind in case of unexpected financial needs.

❓ Frequently Asked Questions

❓ What is the new RMD age?

The Required Minimum Distribution age has been raised to 73 for those born between 1951 and 1959 and to 75 for anyone born in 1960 or later, according to the latest regulations.

📅 When are catch-up contributions allowed?

Starting on January 1, 2025, individuals aged 60 to 63 can make catch-up contributions of $11,250 to eligible retirement plans.

🔄 Can I roll over my 529 plan to a Roth IRA?

Yes, beginning in 2024, individuals can roll over up to $35,000 from a 529 college savings plan to a Roth IRA, subject to certain conditions.

🏦 What are the penalties for not taking an RMD?

The penalty for failing to take an RMD has decreased from 50% to 25% of the RMD amount. If corrected within two years, the penalty drops further to 10%.

💵 Are emergency withdrawals from retirement accounts allowed?

Starting in 2024, individuals can withdraw up to $1,000 per year from their retirement accounts for emergencies without incurring a 10% early withdrawal penalty.

📈 How can I find low-fee retirement plans?

Comparing fees across different 401(k) and IRA providers is essential. Some plans, especially those from small and midsize companies, may have higher fees due to underperforming funds or expensive products.

⚖️ Recent Court Cases Related to Retirement Regulation

In March 2026, the Department of Labor's Retirement Security Rule, which aimed to define an investment advice fiduciary, was vacated by court order. This ruling may affect how retirement advice is regulated and delivered, impacting the rights of consumers in managing their retirement accounts.

Feel free to browse more rulings on the news page for the latest updates on recent court cases.

End of October 2026 Update







Everything you need to know about Earnings per Share:



What are Earnings per Share?



• Earnings per share refers to the amount of earnings per each outstanding share of a public corporation’s stock; in the United States, the Financial Accounting Standards Board requires all publicly-traded companies to produce income statements that account for earnings per share for all major categories outlined in the income statement. As a result, all publicly traded companies, in the United States of America, are required to report their earnings per share for their continuing operations, their net income, all extraordinary items on the income sheet and discontinued operations.

Earnings Per Share


• Earnings per share refers to the portion of a company’s profit that is allocated to each outstanding share of common stock. When calculating a company’s earnings per share, it is better to use a weighted average number of shares outstanding because the number of outstanding shares can fluctuate over time.



How do Companies Calculate Earnings per Share?



• The earnings per share formula are different for each report; in general, the earnings per share formula will not include preferred dividends for variables outside of net income and continued operations. 



• In a basic sense, the earnings per share formula will look as such:



o  Earnings Per Share= Profit/ Weighted Average Common Shares



• For calculating the earnings per share of the firm’s net income, the formula will look as such:



o Earnings Per Share= Net Income-All dividends on Preferred Stock/ Average number of outstanding shares



• The earnings per share formula for continuing operations will look as such:



o Earnings Per Share= Income from Continuing Operations/Weighted Average of Common Shares



• The Earnings per Share formula will only include dividends that were actually declared (by shareholders) in the current year. In this case, all declared dividends are subtracted from the earnings per share formula. The exception to this rule is when preferred shares are cumulative, in which case all annual dividends are deducted regardless of their declaration status. Furthermore, dividends in arrears are not relevant when calculating earnings per share.