📅 2026 Update: Changes in Personal Finance Laws

Since the original article was published, there have been important updates in personal finance laws that affect savings, retirement plans, and consumer finance options. These changes can help individuals make better financial decisions as they plan for the future. The earlier article continues further down the page, providing foundational information that might still be useful.

🚀 SECURE 2.0 Act Changes

The SECURE 2.0 Act, enacted in late 2022, introduced several key changes to retirement savings. The required minimum distribution (RMD) age has been raised to 73 for individuals born between 1951 and 1959. For those born in 1960 or later, the age will increase to 75 in 2033.

This change gives individuals more time to grow their retirement savings before they must start withdrawing.

  • 📉 RMD Penalty Reduction: The penalty for missing an RMD has decreased from 50% to 25%. If the mistake is corrected within two years, the penalty drops to just 10% for IRAs.

💰 Roth 401(k) Changes

As of 2024, there are no longer any RMDs required from Roth accounts in employer retirement plans like 401(k)s and 403(b)s. This change allows individuals to keep their money invested for longer, which can lead to greater growth over time.

🏫 529-to-Roth IRA Rollovers

Starting in 2024, individuals can transfer up to $35,000 from 529 college savings plans to a Roth IRA. This option provides greater flexibility for those who may not need the funds for education but want to save for retirement.

🎓 Student Loan Payment Matching

Beginning in 2024, employers can treat qualified student loan payments as retirement contributions for matching purposes. This means that individuals making student loan payments can benefit from employer contributions to their retirement plans, helping them save for the future while paying off education debt.

📌 Key Points

  • RMD Age: Now 73 for those born 1951-1959; 75 for those born 1960 or later.
  • RMD Penalty: Reduced to 25%, or 10% if corrected promptly.
  • Roth Accounts: No RMDs required starting 2024.
  • 529 Rollovers: Up to $35,000 can be moved to Roth IRAs.
  • Student Loan Matching: Employers can match contributions based on student loan payments.

💡 Tips for Managing Your Finances

Review your financial situation regularly with an attorney to better understand how these changes affect you.

📝 Understand Your RMD Requirements

Make sure to know when you need to start taking RMDs based on your birth year. This understanding can help you avoid penalties and manage your retirement savings more effectively.

🔄 Consider Rolling Over 401(k) Accounts

If your 401(k) plan has high fees, consider rolling it over to an IRA. This can lead to lower fees and more investment options, which may save you money in the long run.

📊 Compare IRA Fees

When selecting an IRA provider, compare the fees associated with different accounts. Some providers offer lower fees than 401(k) plans, which can help you keep more of your savings.

💵 Take Advantage of Catch-Up Contributions

If you are between 60 and 63, make sure to take advantage of the higher catch-up contributions starting in 2025. This allows you to contribute $11,250 to your retirement plans, giving you a boost as you approach retirement.

🚨 Emergency Withdrawals

Beginning in 2024, remember that you can withdraw up to $1,000 per year from your retirement accounts for emergencies without a penalty. This can provide a safety net during unexpected financial challenges.

❓ Frequently Asked Questions

❓ What is the new RMD age?

The SECURE 2.0 Act raised the RMD age to 73 for individuals born between 1951 and 1959 and to 75 for those born in 1960 or later.

💰 Can I withdraw money from my retirement account for emergencies?

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

🎓 How does the 529-to-Roth IRA rollover work?

Beginning in 2024, you can roll over up to $35,000 from a 529 college savings plan to a Roth IRA, allowing greater flexibility in using those funds for retirement.

🏦 What should I consider when rolling over a 401(k)?

When rolling over a 401(k), consider the fees associated with your current plan versus an IRA. Look for options that provide lower fees and better investment choices.

📊 How can I maximize my retirement savings?

To maximize your savings, take advantage of catch-up contributions if you are aged 60 to 63 starting in 2025, allowing you to contribute more to eligible retirement plans.

🔍 Where can I find free financial assistance?

You can access free resources through the CFPB, DOL, and NEFE for guidance on personal finance, retirement planning, and educational materials.

⚖️ Recent Cases Impacting Personal Finance

Recent court rulings have impacted how financial services are regulated and how consumer protections are enforced. These changes may affect your savings and investment strategies.

For further details on recent rulings, feel free to explore more rulings on the news page.

End of October 2026 Update





Figuring out How to Save Money



No matter what financial situation a person is in, it is always a good idea to try to save money. However, it is often difficult to figure out how to save money. Whether it is saving money for a retirement fund, or just trying to keep a few extra dollars, having extra money and being a careful spender is important in order to obtain financial success. 

Figure Out How to Save Money

Here are some helpful tips to help you figure out how to save money.



How to Save Money on Transportation

• New cars

o Choose a model that has a low purchase price and a low depreciation, insurance, gas, maintenance, and financing cost. New car guides can often provide this information.

o After choosing a model, go comparison shopping with several dealers both over the phone and online.

• Used cars

o Use a car guide, such as a “bluebook” to help compare the average retail price of the car with what the seller is asking.

o Have a mechanic check the car to find any potentially expensive problems.

• Car leases

o When leasing a car, consider the price, trade-in allowance, monthly payments, down payments, and any other fees that will be involved.

• Airline fares

o Look at internet travel sites and airline sites online to find special deals.

o Compare major carriers and low-cost carriers.



How to Save Money on Insurance

• Car Insurance

o Make sure a new policy is already in effect before cancelling an old one.

o Purchase insurance from a licensed, low price insurance. Call at least four of these agencies to find the best deal.

• Life Insurance

o Buy a term life insurance policy for just the protection without investments and savings services.

o When buying a universal life, whole life, or other case value policy, anticipate holding the plan for at least 15 years. Cancelling these plans early on can double the life insurance cost

• Homeowner/Renter Insurance

How to Save Money on Banking/Credit



• Debit Cards and Checking Accounts

o Use a free checking account that does not have a minimum balance requirement.

o Some banks provide lower checking costs through either direct depot or ATM use only.

• Credit Cards

o Send payments 7-10 days in advance to avoid late fees and increases in interest rates.

o If the entire bill cannot be paid off, switch the balance to a credit card with a lower APR.

• Savings Product

o Use a bank that is insured by the Federal government.

o Compare fees and rates of different banks and financial institutions.

o Consider U.S. Savings Bonds or Certificates of Deposit to earn the highest return.

How to Save Money on Housing Needs



• Buying a Home

o Try negotiating a lower sale price through a buyer broker working for you and not the seller.

o Have a home inspected before purchasing it.

• Renting a Home

o Find buildings and inquire about the availability.

o Do not sign a lease until you are sure you can be responsible for the monthly payments as agreed upon.

• Home Improvement

o Look at established licensed contracted who give fixed-price bids for jobs.

o Do not sign contracts that require a full payment before finishing the work.

How to Save Money at the Store



• Food

o Shop at lower-priced food stores. Smaller convenience store are more likely to have higher prices.

o Compare the unit price of similar products and choose those with the lower one.

o Take advantages of sale items.

o Buy basic ingredients instead of pre-packaged or ready-made food items.

• Prescriptions

o Use generic equivalents of drugs when possible.

o Call a pharmacy in advance to ask for a price of a medicine.

• Clothing stores

o Check online for any coupons or promotions the store may have.

How to Save Money for Retirement

• Keep putting away money regularly and stick to a plan.

• Understand your retirement needs.

• Put money towards an employer’s retirement savings plan

• Do not touch retirement savings.

• Learn about an employer’s pension plan.