The retirement planning landscape is getting a major facelift in 2024 as provisions of 2022’s SECURE Act 2.0 kick in, bringing key changes intended to expand workers’ savings and incentivize employers to provide benefits.
Go deeper: Individuals will automatically be enrolled in workplace retirement plans instead of being forced to opt in. The initial contribution must be at least 3% of pretax earnings but not more than 10%.
- New rules around hardship withdrawals will allow people to use retirement savings to pay for emergencies.
- People with student loans often can’t afford to save for retirement. Starting in 2024, when individuals make a qualified student loan repayment, their employer may “match” that amount into their 401(k) plan, 403(b) plan or SIMPLE IRA.
- Employers will be required to allow certain part-time employees to participate in 401(k) plans.