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5 policy shifts that can change the way you save for retirement in 2024

1. Student debt relief

Many early career workers face a conundrum when it comes to tackling financial goals: pay down student debt or invest toward retirement?

Starting next year, you may be able to do both at once. Secure 2.0 allows companies to “match” employees’ student loan payments with contributions to their workplace retirement accounts.

2. Workplace emergency accounts

The law allows employers to include emergency savings accounts under the umbrella of workplace plans, such as 401(k)s. Employees would make Roth (after-tax) contributions to these accounts — called pension-linked emergency savings accounts or PLESAs — up to a maximum balance of $2,500.

3. 529 rollovers

So-called 529 accounts are a way to invest money toward a child’s future education. You may be able to deduct contributions to such funds from your state income tax, and you won’t owe tax on withdrawals as long as the money is put toward qualified education expenses.

Starting in 2024, money in a 529 account that goes unused can be rolled over tax-free into a Roth IRA. The 529 must have been open for at least 15 years, and lifetime rollovers max out at $35,000.

4. Penalty-free withdrawals for emergencies

5. Changes to Roth 401(k) rules

How this millennial making $80,000 in Italy and the U.S. spends her money

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