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IRA Changes

Rolling Leftover 529 Funds Into a Roth IRA:
Starting in 2024, funds remaining in a 529 education account after covering educational expenses can be rolled into a Roth IRA, up to a cap of $35,000, under specific conditions.
Making Larger Catch-up Contributions:
Beginning in 2025, individuals aged 60 to 63 can make larger catch-up contributions to 401(k), 403(b), or governmental 457(b) plans.
Matching Student Loan Payments:
Starting in 2024, employers can match qualified student loan payments with contributions to retirement accounts.
Changes to Employer Retirement Plans:
Various changes for employer-sponsored plans, including small-dollar incentives for enrolling in retirement plans, automatic enrollment requirements, benefits for part-time employees, and new starter 401(k) or safe harbor 403(b) plans, beginning in 2024 and 2025.
Emergency Savings Linked to Retirement:
In 2024, employers can create pension-linked emergency savings accounts, allowing contributions and matching for emergency expenses.
Penalty-Free Withdrawals in Qualifying Circumstances:
New exceptions to the 10% early withdrawal penalty for financial emergencies, domestic abuse, federally declared disasters, and terminal illness.
New Rules for Required Minimum Distributions (RMDs):
RMD age increases to 73 in 2023 and 75 in 2033. RMDs eliminated for Roth plans in 2024.
Updates to the Saver's Credit:
Replaced by the Saver's Match starting in 2027, providing federal matching funds for IRA or retirement plan contributions, phasing out at certain income levels.
Retirement Savings Lost and Found:
A searchable national online database, developed by the Department of Labor, helps locate "lost" pension and retirement plan funds.