If you’re a business owner with a 401(k) or similar retirement plan, you’ll want to stay current on changes affecting these accounts. What’s new for 2024?

As part of the SECURE 2.0 Act, several changes will be enacted this year.

If you haven’t already established a retirement plan, you can now offer a “starter” 401(k) or “safe harbor” 403(b) plan to employees who meet age and service requirements. The starter 401(k) has lower annual employee contribution limits than a typical 401(k) or 403(b) and you aren’t required to make matching or nonelective contributions.

Also, you can now match contributions to employees’ retirement plans when these employees make qualified student loan payments.

In another change, part-time employees who meet certain criteria can now contribute to an existing 401(k) plan.

Furthermore, employers can now offer an emergency savings account within a 401(k) or similar plan. This account allows lower-paid employees the chance to save up to $2,500 and take monthly tax-free withdrawals.

You may want to consult with your tax and financial professionals to determine how these changes may affect what you want to do with your retirement plan. The more you know, the better your decisions likely will be.

This content was provided by Edward Jones for use by your local Edward Jones Financial Advisor, Casey Caliva, at Historical 30th & Fern. 

Address:  2222 Fern St., San Diego CA 92104
Phone:  619-516-2744

Web: www.edwardjones.com/casey-caliva