📅 2026 Update: Key Changes in US Personal and Consumer Finance Law

Since the original article was published, several important changes have taken place in US personal and consumer finance law. These updates mainly revolve around retirement savings, penalties, and new rollover options. The earlier article continues further down the page, providing a comprehensive overview of these topics.

📈 SECURE 2.0 Act Implementation

The SECURE 2.0 Act, enacted at the end of 2022, brought major updates to retirement savings. The Required Minimum Distribution (RMD) age is now 73 for individuals born between 1951 and 1959. Those born in 1960 or later will start at age 75 in 2033.

These changes give individuals more time to grow their retirement savings before withdrawing.

🔄 RMD Penalty Reduction

The penalty for not taking an RMD has decreased significantly. It dropped from 50% to 25% of the RMD amount. If corrected within two years, the penalty can be reduced further to just 10% for IRAs.

This aims to encourage compliance while easing the financial burden on those who may miss the deadline.

🏦 Roth 401(k) RMD Exemption

Starting in 2024, individuals are no longer required to take RMDs from their Roth accounts in employer plans like 401(k)s and 403(b)s. This means that the money can continue to grow tax-free for a longer period, benefiting those who invest in these accounts.

🎓 529-to-Roth IRA Rollovers

Beginning in 2024, there is a new option for families with 529 college savings plans. They can roll over up to $35,000 from these plans to a Roth IRA. This provides more flexibility in using the funds for retirement savings rather than strictly for education.

📌 Key Points Summary

  • 📅 RMD age raised to 73 for those born 1951-1959; 75 for those born 1960 or later.
  • 📉 RMD penalty reduced to 25%, or 10% if corrected within two years.
  • 🚫 RMDs no longer required from Roth accounts in employer plans.
  • 🎓 New option to roll over $35,000 from 529 plans to a Roth IRA.
  • 💼 Employers can match student loan payments as retirement contributions starting in 2024.

💡 Tips for Managing Your Retirement Accounts

Reviewing your financial situation with an attorney is important for understanding your specific needs.

📊 Understand Your RMD Obligations

Make sure you know your Required Minimum Distribution age. This is crucial to avoid penalties. Remember, the age depends on when you were born.

🔄 Consider the RMD Penalty Changes

If you missed taking your RMD, it’s essential to take action. The penalty has been reduced, so correcting the issue within two years can save you money.

💼 Explore Roth Account Benefits

If you have a Roth 401(k), remember that RMDs are no longer required. This allows your investment to grow without mandatory withdrawals, which can be advantageous for long-term savings.

🎓 Utilize 529-to-Roth IRA Options

If you have excess funds in a 529 plan, consider rolling over some to a Roth IRA. This can enhance your retirement savings while keeping the tax benefits.

🏦 Look into Employer Matching Programs

Starting in 2024, check if your employer matches student loan payments. This can help boost your retirement savings while paying off debt.

📈 Review Fees in Your Retirement Accounts

Be mindful of fees associated with your 401(k) and IRA. High fees can eat into your retirement savings, so compare options before committing.

❓ Frequently Asked Questions

❓ What is the new RMD age?

The RMD age is now 73 for individuals born between 1951 and 1959, and 75 for those born in 1960 or later, as per the SECURE 2.0 Act.

💰 How has the penalty for missing RMDs changed?

The penalty for failing to take an RMD has decreased from 50% to 25%. If corrected within two years, it can be reduced further to 10% for IRAs.

🎓 Can I roll over funds from a 529 plan?

Yes, starting in 2024, you can roll over up to $35,000 from a 529 college savings plan to a Roth IRA, subject to specific conditions.

🏦 Are there benefits to having a Roth 401(k)?

Yes, as of 2024, you are no longer required to take RMDs from your Roth 401(k), allowing your money to grow longer without mandatory withdrawals.

📈 How can I ensure I am compliant with my RMDs?

Make sure to mark your calendar to ensure you begin taking RMDs by April 1 of the year after you turn 73 or 75, depending on your birth year.

📋 What government resources can help with retirement planning?

The Consumer Financial Protection Bureau (CFPB) and the Department of Labor (DOL) provide valuable resources for retirement planning and consumer rights.

⚖️ Recent Cases Related to Personal Finance

Recent court rulings have impacted personal finance laws, especially concerning retirement plans and fiduciary responsibilities.

For more insights, browse more rulings on the news page.

End of October 2026 Update






What is FINRA?

• FINRA, or the Financial Industry Regulatory Authority, is a private corporation in the United States that acts as a self-regulatory organization for broker-dealers. Although it is commonly mistaken for a government agency, FINRA is a non-governmental organization that institutes financial regulation on American brokerage firms and exchange rates. 

• FINRA is the largest regulator for security firms in the United States; the mission of the agency is to protect investors by ensuring that the securities industry operates fairly and honestly. In total, FINRA oversees over 4,500 brokerage firms, roughly 165,000 branch offices and over 630,000 registered security representatives. 

FINRA

• FINRA has over 3,000 employees and is headquartered in Washington, D.C. and New York, New York. FINRA maintains over 20 regional offices, located throughout the United States of America. 

• FINRA was formed by a consolidation of the enforcement branch of the New York Stock Exchange and the NASD. 


History of FINRA:



• As stated before, FINRA is the result of a merger between the NYSE and the NASD. The NASD was established in 1939 in response to the Securities Exchange Act of 1934, which allowed the agency to supervise conduct of its members. In 1971, the NASD launched NASDAQ—a revolutionary computerized stock trading system. The NASDAQ eventually merged with the AMEX in 1998. Two years later, the NASDAQ separated itself from the NASD. 

• In July of 2007, the SEC approved the formation of FINRA—a consolidation of the enforcement and arbitration branches of the NYSE and the NASD. 


What does FINRA do?

• FINRA maintains regulatory oversight over all securities firms that conduct business with the general public. In addition to these firms, FINRA also maintains authority over those institutions who offer professional training, arbitration and mediation, market regulation by contract for the NASDAQ and the New York Stock Exchange, testing and licensing of registered security professionals (FINRA administers the Series 7 and Series 63 etc.) and all industry realities associated with the markets, including Trade Reporting Facilities and various over-the-counter operations. 

• FINRA regulates trading in corporate bonds, securities futures, options and equities; the agency possesses authority over the activities of any brokerage firm, branch office and registered representative that provides investment advice or offers investment vehicles to the public.

• As stated before, FINRA licenses investment professionals and admits firms to engage in investment practices. When doing this, FINRA will institute rules to govern these entities behavioral patterns, as well examine them for regulatory compliance. 

Arbitration Role:

• FINRA currently operates the nation’s largest arbitration forum for the resolution of disputes between member firms and their respective customers, as well as between employees of brokerage firms and the underlying company. 

• FINRA employs over 2,800 arbitrators and over 3,500 individuals classified as non-industry panelists to govern the aforementioned relationships. 

• In general, FINRA is the regulatory agency that provides assistance and enforcement for all agreements structured between investors and their respective brokerage firms and stockbrokers.