3 Changes to Retirement Planning in 2024

Feb 13, 2024

The SECURE 2.0 Act has been in effect for over a year after being signed into law on December 29th, 2022. It includes several retirement provisions impacting Required Minimum Distributions and contribution limits for high-income earners.  

To learn about these earlier changes, check out our previous video, “3 Important Financial Planning Changes: Secure 2.0 Act.” 

While several updates went into effect in 2023, 2024 has brought about additional changes.  

With that said, here are three things to think about for retirement planning in 2024:

1. Maximize your 401(k) and 403(b) contributions.

Contribution limits for 2024 have changed. Your maximum deferral into a 401(k) or 403(b) is now $23,000. If you’re over 50, you can contribute another $7,500 for a maximum of $30,500. 

If you’ve been maxing out these accounts in 2023, review your contributions to ensure you’re on track for 2024.

2. Update your IRA contributions.

Like 401(k) and 403(b) contributions, IRA and Roth IRA contribution limits have changed. If you contribute each month to your IRA or Roth IRA, update those contributions to maximize them by the end of the year.  

In 2024, you can contribute up to $7,000. If you are over 50, you still get the bonus of a $1,000 catch-up contribution.  

3. Utilize Unused 529 Funds.

If you have unused funds in a 529 plan, a new provision of the SECURE 2.0 Act allows you to roll those 529 funds over to a Roth IRA for further growth potential. 

However, if you plan on using this strategy, make sure you are aware of the following restrictions: 


  1. The 529 plan must be open for 15 years.  
  2. The rollover contribution has to first be in the 529 plan for at least five years. 
  3. Roth IRA contribution limits restrict how much you can roll over in a year. 
  4. The lifetime limit for rollover contributions from a 529 plan into a Roth IRA is $35,000.

Bonus Tip: Clarification on Mandatory Roth Contributions

As a final note, mandatory Roth contributions into your 401(k) and 403(b) have been delayed.  

A provision in the SECURE 2.0 Act mandated that if you are over 50 and made over $145,000 in the prior year, your catch-up contributions into your 401(k) and 403(b) must be made on a Roth basis. However, this requirement has been postponed until 2026. 

Our team stays up to date on all of these legislative changes that may impact your plan. 

If you’d like to talk with one of our advisors about these updates, reach out to our team at [email protected]. 

Schedule an appointment with an advisor in your area.