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

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.

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.

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.

Current rules allow retirement savers to pull money from their 401(k)s and traditional individual retirement accounts before retirement to meet an “immediate and heavy” financial need. The withdrawal may be subject to income tax, and those under age 59½ typically owe a 10% tax penalty.

Starting in 2024, you can make one withdrawal of $1,000 per year to cover personal and family emergency expenses without owing the 10% penalty. You only need to self-certify that you need the money for an emergency.

Victims of domestic abuse under the age of 59½ can withdraw up to $10,000 from IRAs and 401(k)s without owing the penalty.

The Roth version of a 401(k) comes with similar tax rules to a Roth IRA. You contribute money you’ve already paid taxes on and in exchange for forgoing…