📅 2026 Update: Changes Impacting Your Retirement and Savings

Since the original article was published, there have been several important updates regarding retirement savings and personal finance. These changes affect how you manage your retirement accounts and adapt to new financial rules. The earlier article continues further down the page, providing more context.

🏦 SECURE 2.0 Act Changes

The SECURE 2.0 Act brought significant updates to retirement planning. One major change is the increase in the Required Minimum Distribution (RMD) age. Individuals born between 1951 and 1959 now start RMDs at age 73, while those born in 1960 or later will start at age 75 in 2033.

  • 🗓️ RMD Penalty Reduction: The penalty for not taking your RMD decreased from 50% to 25%. If you correct this mistake within two years, the penalty drops further to 10% for IRAs.

💰 Roth 401(k) Updates

As of 2024, there are new rules for Roth accounts in employer plans. You are no longer required to take RMDs from these accounts. This change allows for more flexibility in managing your savings.

🎓 529 Plan Rollovers

Beginning in 2024, you can roll over up to $35,000 from a 529 college savings plan into a Roth IRA under specific conditions. This gives greater options for those saving for education.

💼 Student Loan Payment Matching

Starting in 2024, employers can match contributions based on your student loan payments as if those payments were for retirement contributions. This new rule can help boost retirement savings while paying off student debt.

🚨 Emergency Withdrawals

Newly effective in 2024, individuals can withdraw up to $1,000 from retirement accounts without a penalty for emergencies. You can repay this amount within three years if needed.

📌 Key Updates Summary

  • 🏦 RMD age raised to 73 for those born 1951-1959, and 75 for those born in 1960 or later.
  • 💰 RMD penalty reduced from 50% to 25% for failures, and 10% if corrected in two years.
  • 🎓 Roll over up to $35,000 from 529 plans to Roth IRAs starting 2024.
  • 💼 Student loan payments can be matched by employers for retirement contributions.
  • 🚨 Withdraw up to $1,000 from retirement accounts for emergencies without penalties from 2024.

💡 Tips for Managing Your Retirement Plans

Review the details of your situation with an attorney.

📈 Understand Your RMD Obligations

Know when you must start taking RMDs. If you were born between 1951 and 1959, this is at age 73. For those born in 1960 or later, it will be at age 75.

This helps avoid penalties.

📊 Compare Fees

Check the fees associated with your 401(k) plan versus an IRA. Some 401(k) plans can have high fees, especially from underperforming funds. A lower-cost IRA might be a better option.

💵 Take Advantage of Catch-Up Contributions

If you are aged 60 to 63, you can make catch-up contributions of up to $11,250 starting January 1, 2025. This is an increase from the previous limit of $8,000.

🏫 Plan for 529 Rollovers

If you have a 529 college savings plan, consider the option to roll over up to $35,000 into a Roth IRA. This can provide more flexibility for future savings needs.

🔄 Use Emergency Withdrawals Wisely

Be aware that you can withdraw up to $1,000 per year from your retirement accounts for emergencies without penalties starting in 2024. Make sure to repay this amount within three years if possible.

❓ Frequently Asked Questions

❓ What is the new RMD age?

Individuals born between 1951 and 1959 must start RMDs at age 73, and those born in 1960 or later must start at age 75.

💳 Can I withdraw from my retirement account for emergencies?

Yes, starting in 2024, you can withdraw up to $1,000 per year from retirement accounts for emergencies without incurring a penalty.

🏠 What happens to my 529 plan funds?

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

🏦 How are catch-up contributions changing?

From January 1, 2025, individuals aged 60 to 63 can make catch-up contributions of $11,250 to eligible retirement plans, up from $8,000.

🔍 What are the penalties for missing RMDs?

The penalty for failing to take an RMD is now 25% of the amount, reduced from 50%. If you correct this within two years, the penalty further drops to 10%.

🎓 Can employers match student loan payments?

Yes, starting in 2024, employers can treat qualified student loan payments as retirement contributions for matching purposes.

⚖️ Recent Cases Impacting Retirement Planning

Recent court rulings have affected retirement planning, particularly regarding fiduciary responsibilities and investment advice. These changes connect to the broader topic of consumer finance and retirement savings.

Explore more recent rulings in the news section for additional insights on this topic. more rulings on the news page.

End of October 2026 Update






What is Fannie Mae?



Fannie Mae: A Brief Guide

• Fannie Mae, which is short for, The Federal National Mortgage Association, was established in 1938 by the United Congress as a Government Sponsored Enterprise (although it is publicly traded). 

• Fannie Mae is responsible for maintaining a secondary market for home mortgages; the government sponsored enterprise attempts to achieve this by ensuring that mortgages who meet a specific criteria can be traded among investment banks and lending institutions. 

• Fannie Mae, as a result of their mission statement, packages mortgages in the form of mortgage-backed securities, which in turn, allows lenders to reinvest their assets into more lending models. This system effectively increases the number of lenders in the mortgage market through the reduction and reliance of thrifts. 

• Fannie Mae is headquartered in Washington D.C and is currently run by Mike Williams, the firm’s Chief Executive Officer. In 2009 Fannie Mae had revenue of $29.1 billion, a net income of -$72 billion and -$869 billion of total assets. 

What does Fannie Mae do?

• Fannie Mae is the largest source of home financing in the United States of America. The enterprise is charged, by Congress, with providing stability and liquidity in the secondary mortgage market, through the issuance of secondary market assistance relating to mortgages for low and moderate-income families and by promoting access to mortgage loans. 

• In essence, Fannie Mae purchases mortgages directly from lenders, such as depository institutions or investment banks, and holds these loans in a portfolio or issues them as mortgage-backed securities. 

• As stated before, Fannie Mae is a privately owned corporation; however, they enjoy a status as a congressionally authorized, government-sponsored enterprise, which effectively empowers them with certain privileges including being exempt from paying local and state property taxes (Fannie Mae is required to pay property taxes however). Furthermore, Fannie Mae utilizes, as a result of their classification a 2 and a quarter billion dollar standing line credit from the United States Treasury Department.

Fannie Mae and the Mortgage Crisis:

• One of Fannie Mae’s primary goals is to extend mortgages to low or middle-income families. During the housing boom of the 2000’s Americans were over-extending themselves by spending beyond their means. Unfortunately Fannie Mae, during this time consumption and overuse of credit, did not stray from their mission of providing 30-year-fixed mortgages, with a low down payment, to unworthy applicants.

• The growth of private securitization and the decrease of regulation resulted in the oversupply of underpriced housing loans. This ultimately led to an increasing number of borrowers, with poor credit scores, who were unable to pay their mortgages. As a result, home prices decreased significantly and the credit market dried up. These two factors imposed heavy losses on GSEs such as Fannie Mae. 

• Despite numerous efforts on the part of the Federal Government to re-instill confidence in Fannie Mae, the entity’s stock plummeted more than 90% from its on-year prior level. As a result of its “too big to fail status”; however, the Federal government bailed Fannie Mae out—the bailout of both Fannie Mae and Freddie Mac is estimated to cost taxpayers between $250 and $360 billion dollars.