Changes Coming to Roth Accounts » Audio Archive » Faith & Finance (formerly MoneyWise)

Changes Coming to Roth Accounts

Faith & Finance (formerly MoneyWise)

Christian talk radio with Rob West

February 18, 2023

The new spending package passed by Congress contains important provisions for those with unused money in 529 education savings accounts. Starting in 2024, up to $35,000 of that money can be rolled into a Roth IRA, if it has been in the account for 15 years. The legislation also enables employers to help workers save for emergencies, helps workers repay student loan debt, and makes retirement plans more accessible to part-time workers. Additionally, those with Roth accounts may get the biggest win coming out of the legislation, as they do not have to start withdrawing money when they reach age 72. The legislation also allows employers to put their matching contributions into an employee’s Roth or conventional 401k, and those earning more than $145,000 will have to put their catch-up contributions into a Roth 401k and pay taxes on it going in. These changes will help people make wise decisions about their retirement savings.

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