📅 2026 Update: Changes in Retirement Savings and Financial Services

Since the original article was written, several significant updates have occurred in the realm of retirement savings and financial services. The SECURE 2.0 Act, enacted in 2022, has changed many rules regarding retirement plans, affecting how individuals save for their future. The details below highlight the most relevant changes to help you understand their impact on your financial planning.

🥳 SECURE 2.0 Act Implementation

The SECURE 2.0 Act brought major adjustments to retirement savings rules. The Required Minimum Distribution (RMD) age is now 73 for those born between 1951 and 1959. For individuals born in 1960 or later, the age will increase to 75 starting in 2033.

  • 📅 RMD Age: This change allows individuals to keep their savings invested longer, potentially increasing their retirement funds.

💰 RMD Penalty Reduction

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 can drop as low as 10% for IRAs.

  • ⚠️ Penalty Relief: This provides some relief for individuals who may have missed their RMDs, making it easier to manage retirement accounts.

🔄 Roth 401(k) RMD Exemption

Starting in 2024, individuals will no longer have to take RMDs from Roth accounts in employer retirement plans, including 401(k)s and 403(b)s.

  • 🚫 No RMDs on Roth Accounts: This change allows for more tax-free growth in retirement savings for Roth account holders.

📈 Catch-Up Contribution Increases

As of January 1, 2025, those aged 60 to 63 can make catch-up contributions of $11,250 to eligible retirement plans, up from the previous limit of $8,000.

  • 🎉 Increased Savings: This increase helps older individuals boost their retirement savings as they approach retirement age.

🏦 529-to-Roth IRA Rollovers

Beginning in 2024, individuals can roll over up to $35,000 from 529 college savings plans to a Roth IRA, subject to specific conditions.

  • 🎓 Flexibility for Education Savings: This option provides more flexibility for families who may not need all the funds for education.

📌 Key Points Summary

  • 📅 RMD age raised to 73 and 75.
  • ⚠️ Reduced penalties for missed RMDs.
  • 🚫 Roth accounts in employer plans exempt from RMDs starting 2024.
  • 🎉 Higher catch-up contributions for those aged 60 to 63.
  • 🎓 Ability to roll over 529 plan funds to a Roth IRA starting 2024.

💡 Tips for Managing Retirement Accounts

Reviewing your retirement strategy is essential. Go over the details of your own situation with your attorney.

📊 Understand RMD Rules

Know your RMD age based on your birth year. Individuals born between 1951 and 1959 must start at 73, while those born in 1960 or later must start at 75.

💵 Consider Catch-Up Contributions

If you are aged 60 to 63, take advantage of the increased catch-up contribution limit of $11,250 starting in 2025. This can help you build your retirement savings more quickly.

🔄 Explore Roth Options

Look into the benefits of rolling over funds from 529 plans to Roth IRAs starting in 2024. This could provide tax-free growth for your retirement savings.

📞 Consult Your Plan Administrator

Reach out to your 401(k) plan administrator for guidance on rolling over to an IRA or understanding your plan's fees. Knowing your options can help you make informed decisions.

🚨 Monitor Fees

Be aware of the fees associated with your retirement accounts. Some 401(k) plans have high fees that could eat into your savings. Compare providers to find more cost-effective options.

❓ Frequently Asked Questions

❓ What is the new RMD age for retirement accounts?

Individuals born between 1951 and 1959 must take their first RMD at age 73, while those born in 1960 or later must start at age 75.

💰 How can I avoid penalties for missing RMDs?

If you miss taking your RMD, the penalty has been reduced to 25% of the RMD amount. If you correct the mistake within two years, it can drop to 10% for IRAs.

🎓 Can I use 529 funds for retirement?

Starting in 2024, you can roll over up to $35,000 from a 529 plan to a Roth IRA, giving you more options for managing your education and retirement savings.

📈 What are the catch-up contributions for older individuals?

As of January 1, 2025, individuals aged 60 to 63 can contribute up to $11,250 as catch-up contributions to eligible retirement plans.

📅 How do I find low-cost retirement plans?

Review the fees associated with your retirement accounts. Some 401(k) plans, especially from small companies, may have high fees, making it worthwhile to compare options.

🏦 What resources are available for retirement planning?

The CFPB, DOL, and NEFE offer various free resources for retirement planning and consumer rights, helping individuals make informed decisions about their financial futures.

⚖️ Recent Cases Impacting Retirement and Financial Planning

Recent court rulings have affected rules around retirement and financial planning, including the vacating of the Department of Labor's Retirement Security Rule. This impacts fiduciary responsibilities and investment advice in retirement accounts.

For more information, readers can check more rulings on the news page.

End of October 2026 Update






What is the Series 7 License?



Guide to the Series 7

• The Series 7 license is awarded to an investment professional when he or she passes the General Securities Representative Exam (more commonly known as the Series 7 examination). The obtainment of the series 7 license is mandated (enforced by the SEC and FINRA) to become a Registered Representative of a broker dealer in the United States. When obtained, the license will enable the individual to talk to prospective clients (or clients) in regards to investment advice. 


• The Series 7 license is the most comprehensive of the licenses that permit an individual to communicate with retail investors. As a result of the privileges granted by the Series 7 license, the majority of analysts, account managers and other professionals employed with a registered Broker-Dealer, hold the certificate.  


What is a Registered Representative?

• A registered representative is a stock broker or account executive; the individual who holds this title is granted permission, by the United States Federal Government and coordinating agencies, to sell securities to investors. 

• A registered representative will typically work for broker-dealers licensed by the Self-Regulatory Organizations of the New York Stock Exchange, the National Association of Securities Dealers (NASD) and the Securities and Exchange Commission (SEC). 

• To become a Registered Representative, an individual must obtain sponsorship from his or her employer, typically a broker-dealer firm, and subsequently pass the FINRA-administered Series 7 examination. In addition to obtaining the Series 7 license, a number of states will also require broker-dealers to pass the Series 63 examination.  

What is on the Series 7 Examination?

• The Series 7 examination is a six-hour, 260 question test that is administered and owned by the Financial Industry Regulatory Authority (FINRA). Of the 260 questions, 250 will count towards the participants final score. 

• The Series 7 examination covers a number of finance subjects and a wide range of investments, including: stocks, options, investment company products, bonds and limited partnerships.

• To pass the test and obtain the Series 7 license the participant must score above a 70%; if the individual scores above a 70%, they will be immediately granted the Series 7 license (General Securities license).

• The average score on the Series 7 examination is roughly 73%, with approximately 65% of test-takers achieving a passing mark. When the candidate receives sponsorship from their respective employer, they will be provided with a comprehensive study binder issued by FINRA. 

• As of November of 2010, registration costs for the Series 7 examination totaled $265.