SECURE 2.0 Act content tips for financial marketers in 2024

2.0 in 2024: SECURE Act content tips for financial marketers

By Colter Hettich

January 3, 2024
photo of a lighthouse
Help your audience navigate new retirement savings rules and regulations

As a follow-up to our retirement messaging guide last February, we’re back with a look at which provisions of the SECURE Act 2.0 take effect in 2024 — and the most important aspects to communicate to those planning their retirement.

1. Retirement planners now have the option to roll over funds from a 529 education account into a Roth IRA — tax-free.

Communicate this:
There are important limitations: Your audience is capped at $35,000 total, not annually; rollover amounts cannot exceed the annual contribution limit for Roth IRAs; and the 529 account must have been open for more than 15 years.

2. Participants in Roth 401(k)s no longer need to take required minimum distributions (RMDs). This conforms to the rule that already applies to Roth IRA account owners.

Communicate this:
Roth 401(k)s could potentially be a more valuable option for your audience, as they now can take advantage of compounding longer into retirement for an account with tax-free withdrawals.

3. As a form of student debt relief, employers now have the option to make additional contributions to employees’ workplace retirement plans that match the amount of their student loan payments.

Communicate this:
If your audience is full-time employees with student loan debt, encourage them to ask their employer if they will offer this benefit. If your audience is actively seeking employment, prompt them to consider how important this benefit may or may not be — then prioritize job opportunities accordingly.

4. Employers can now offer a way to help employees create an emergency savings account via new pension-linked emergency savings accounts, or PLESAs. An employee’s PLESA account balance cannot exceed $2,500.

Communicate this:
PLESA contributions must be made after tax. However, employers are required to match those contributions at the same rate they match contributions to Roth or traditional retirement accounts. This match could help your audience build an emergency fund faster.

5. For victims of domestic abuse under the age of 59½, there is now a provision that allows them to take up to $10,000 from their IRA or 401(k) without paying the 10% penalty tax.

Communicate this:
If your audience finds themselves in need of emergency funds after suffering a domestic abuse situation, their IRA or 401(k) can provide some tax-free financial relief.

6. Individuals of any age can withdraw up to $1,000 for emergencies from their IRA or 401(k) — penalty-free.

Communicate this:
If your audience takes this emergency withdrawal, make sure they know they cannot take another emergency withdrawal until they repay the $1,000, or 3 years have passed.

What are your plans for retirement content in 2024? We’d love to hear where your strategy is pointing you, what types of content you’re leaning into, and how we might be able to help! Please feel free to contact us directly at imprint@imprintcontent.com or via our contact page here.

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