Lansing, MI

Change City

---

• Back to News Feed

Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?

Posted on 12/02/24 by Careena Eggleston

The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.

Penalty-Free Emergency Withdrawals

Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:

• Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.
• Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.

Changes to Required Minimum Distributions (RMDs)

The SECURE 2.0 Act also adjusts the rules around RMDs:

• RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.
• Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.

Other Noteworthy Updates

• Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.
• Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.

What Does This Mean for Michiganders?

These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.

Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from T. Rowe Price and Fidelity.

By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.

Sources:

• New 401(k) Rules Let You Withdraw $1,000 Without Penalty – AARP
• Retirement Plan and IRA Required Minimum Distributions FAQs – IRS
• Secure Act 2.0: Key Changes to Retirement Savings – Fidelity
• Roth 401(k) Changes: No More Required Minimum Distributions – Barron’s

This story is provided by AARP Michigan. Visit the AARP Michigan page for more news, events, and programs affecting retirement, health care, and more.

AARP Events for Lansing

AARP Events for Lansing

• AARP Holiday Movie Night: ‘A Christmas Story’

  Wednesday, Dec 4, 2024

  Swank Screening

  Online Event

• Try a Calming 10-Minute Guided ‘Meditation Moment’

  Wednesday, Dec 4, 2024 at 9:00 a.m. ET

  Zoom

  Online Event

• Try a Zumba Gold Class for Fitness and Brain Health

  Wednesday, Dec 4, 2024 at 11:00 a.m. ET

  Zoom

  Online Event

View All AARP Events

Only $12 your first year with Automatic Renewal

• Immediate access to your member benefits
• Discounts on travel and everyday savings
• Subscription to AARP The Magazine
• FREE second membership

Join AARP

Already a member? Renew or Print Card

Facebook

Contact AARP
in Lansing

• MIAARP@aarp.org
• AARP Michigan
• Contact Us

     

Return to top

Warning (2): include(/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.footer.html) [<a href='http://php.net/function.include'>function.include</a>]: failed to open stream: No such file or directory [APP/View/Layouts/aarp_2023.ctp, line 242]
Code Context
            <?php // if (!$nowrapper) (Globals::$language == 'es') ? include(APP . "/Resource/aarpe_footer_es.html") : include(APP . "/Resource/aarpe_footer.html"); ?>
            <?php if (!$nowrapper):  // MLW - Spanish wrappers TBD
                    include (APP . "Resource/aarp2_master.footer.html");
$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp'
$dataForView = array(
	'content_for_layout' => '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
',
	'scripts_for_layout' => '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }',
	'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP'
)
$content_for_layout = '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
'
$scripts_for_layout = '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$title_for_layout = '{local_city_c}, {local_state} Happenings - AARP'
$asset_version = '230831'
$min = true
$nowrapper = false
$css = '        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$highlighting = ''
$location = '<a href="/lansing-mi/?intcmp=CSN-LOCAL-NAV-HOME">Lansing, MI</a>'
$no_header = false
$header_title = '<a href="/lansing-mi/happenings/">News Feed</a>'
$header_subtitle = ''
$isPR = false
$navbar = '<nav class="section" role="button" aria-expanded="false" aria-controls="collapse">
	<div class="section-toggle">Sections <i class="fas fa-chevron-down"></i></div>
	<ul class="secondary-menu" id="secondary-menu" role="menu" aria-busy="true">
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/aarp-events/?intcmp=CSN-LOCAL-NAV-OLE" data-formelementid="LOCAL-LNK-CLK-EVENTS">Online & Local Events</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/things-to-do/?intcmp=CSN-LOCAL-NAV-TTD" data-formelementid="LOCAL-LNK-CLK-THINGSTODO">Things to Do</a></li>
		<li role="presentation" class="active"><a role="menuitem" class="menuitem" href="/lansing-mi/happenings/?intcmp=CSN-LOCAL-NAV-NF" data-formelementid="LOCAL-LNK-CLK-HAPPENINGS">News Feed</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/volunteering/?intcmp=CSN-LOCAL-NAV-VOL" data-formelementid="LOCAL-LNK-CLK-VOLUNTEERING">Volunteering</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-NAV-HC" data-formelementid="LOCAL-LNK-CLK-HC">Home & Community</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/movies/?intcmp=CSN-LOCAL-NAV-MFG" data-formelementid="LOCAL-LNK-CLK-MOVIESFORGROWNUPS">Movies for Grownups</a> </li>
		<li role="presentation" class="more nosep " id="submenu-more">
			<span role="menuitem" class="menuitem" data-formelementid="LOCAL-LNK-CLK-MORE">More<i class="fas fa-chevron-down"></i></span>
			<ul class="secondary-submenu animate slide-in" id="secondary-submenu">
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/discounts/?intcmp=CSN-LOCAL-NAV-LO" data-formelementid="LOCAL-LNK-CLK-OFFERS">Local Offers</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/local-resources/?intcmp=CSN-LOCAL-NAV-LR" data-formelementid="LOCAL-LNK-CLK-LOCALRESOURCES">Local Resources</a> </li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/jobs/?intcmp=CSN-LOCAL-NAV-WJ" data-formelementid="LOCAL-LNK-CLK-WORK&JOBS">Work & Jobs</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/events/?intcmp=CSN-LOCAL-NAV-CC" data-formelementid="LOCAL-LNK-CLK-EVENTS">Community Calendar</a></li>
				<!--
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/healthy-living/?intcmp=CSN-LOCAL-NAV-HEALTHY_LIVING" data-formelementid="LOCAL-LNK-CLK-HEALTHY_LIVING">Healthy Living</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/arts-entertainment/?intcmp=CSN-LOCAL-NAV-ARTS_ENT" data-formelementid="LOCAL-LNK-CLK-ARTS_ENT">Arts & Entertainment</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/museums/?intcmp=CSN-LOCAL-NAV-MUSEUMS" data-formelementid="LOCAL-LNK-CLK-MUSEUMS">Museums</a></li>
				-->
			</ul>
		</li>
		
	</ul>
</nav>'
$header_custom = ''
$breadcrumbs = array(
	(int) 0 => array(
		'title' => 'News Feed',
		'slug' => 'happenings'
	)
)
$row = array(
	'title' => 'Back to News Feed',
	'slug' => 'happenings'
)
$i = (int) 0
include - APP/View/Layouts/aarp_2023.ctp, line 242
include - APP/View/Layouts/aarp_2023.ctp, line 242
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::renderLayout() - CORE/Cake/View/View.php, line 546
View::render() - CORE/Cake/View/View.php, line 481
Controller::render() - CORE/Cake/Controller/Controller.php, line 963
AppController::renderPage() - APP/Controller/AppController.php, line 136
BlogsController::display() - APP/Controller/BlogsController.php, line 81
ReflectionMethod::invokeArgs() - [internal], line ??
Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 118

Warning (2): include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.footer.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [APP/View/Layouts/aarp_2023.ctp, line 242]
Code Context
            <?php // if (!$nowrapper) (Globals::$language == 'es') ? include(APP . "/Resource/aarpe_footer_es.html") : include(APP . "/Resource/aarpe_footer.html"); ?>
            <?php if (!$nowrapper):  // MLW - Spanish wrappers TBD
                    include (APP . "Resource/aarp2_master.footer.html");
$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp'
$dataForView = array(
	'content_for_layout' => '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
',
	'scripts_for_layout' => '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }',
	'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP'
)
$content_for_layout = '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
'
$scripts_for_layout = '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$title_for_layout = '{local_city_c}, {local_state} Happenings - AARP'
$asset_version = '230831'
$min = true
$nowrapper = false
$css = '        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$highlighting = ''
$location = '<a href="/lansing-mi/?intcmp=CSN-LOCAL-NAV-HOME">Lansing, MI</a>'
$no_header = false
$header_title = '<a href="/lansing-mi/happenings/">News Feed</a>'
$header_subtitle = ''
$isPR = false
$navbar = '<nav class="section" role="button" aria-expanded="false" aria-controls="collapse">
	<div class="section-toggle">Sections <i class="fas fa-chevron-down"></i></div>
	<ul class="secondary-menu" id="secondary-menu" role="menu" aria-busy="true">
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/aarp-events/?intcmp=CSN-LOCAL-NAV-OLE" data-formelementid="LOCAL-LNK-CLK-EVENTS">Online & Local Events</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/things-to-do/?intcmp=CSN-LOCAL-NAV-TTD" data-formelementid="LOCAL-LNK-CLK-THINGSTODO">Things to Do</a></li>
		<li role="presentation" class="active"><a role="menuitem" class="menuitem" href="/lansing-mi/happenings/?intcmp=CSN-LOCAL-NAV-NF" data-formelementid="LOCAL-LNK-CLK-HAPPENINGS">News Feed</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/volunteering/?intcmp=CSN-LOCAL-NAV-VOL" data-formelementid="LOCAL-LNK-CLK-VOLUNTEERING">Volunteering</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-NAV-HC" data-formelementid="LOCAL-LNK-CLK-HC">Home & Community</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/movies/?intcmp=CSN-LOCAL-NAV-MFG" data-formelementid="LOCAL-LNK-CLK-MOVIESFORGROWNUPS">Movies for Grownups</a> </li>
		<li role="presentation" class="more nosep " id="submenu-more">
			<span role="menuitem" class="menuitem" data-formelementid="LOCAL-LNK-CLK-MORE">More<i class="fas fa-chevron-down"></i></span>
			<ul class="secondary-submenu animate slide-in" id="secondary-submenu">
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/discounts/?intcmp=CSN-LOCAL-NAV-LO" data-formelementid="LOCAL-LNK-CLK-OFFERS">Local Offers</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/local-resources/?intcmp=CSN-LOCAL-NAV-LR" data-formelementid="LOCAL-LNK-CLK-LOCALRESOURCES">Local Resources</a> </li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/jobs/?intcmp=CSN-LOCAL-NAV-WJ" data-formelementid="LOCAL-LNK-CLK-WORK&JOBS">Work & Jobs</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/events/?intcmp=CSN-LOCAL-NAV-CC" data-formelementid="LOCAL-LNK-CLK-EVENTS">Community Calendar</a></li>
				<!--
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/healthy-living/?intcmp=CSN-LOCAL-NAV-HEALTHY_LIVING" data-formelementid="LOCAL-LNK-CLK-HEALTHY_LIVING">Healthy Living</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/arts-entertainment/?intcmp=CSN-LOCAL-NAV-ARTS_ENT" data-formelementid="LOCAL-LNK-CLK-ARTS_ENT">Arts & Entertainment</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/museums/?intcmp=CSN-LOCAL-NAV-MUSEUMS" data-formelementid="LOCAL-LNK-CLK-MUSEUMS">Museums</a></li>
				-->
			</ul>
		</li>
		
	</ul>
</nav>'
$header_custom = ''
$breadcrumbs = array(
	(int) 0 => array(
		'title' => 'News Feed',
		'slug' => 'happenings'
	)
)
$row = array(
	'title' => 'Back to News Feed',
	'slug' => 'happenings'
)
$i = (int) 0
include - APP/View/Layouts/aarp_2023.ctp, line 242
include - APP/View/Layouts/aarp_2023.ctp, line 242
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::renderLayout() - CORE/Cake/View/View.php, line 546
View::render() - CORE/Cake/View/View.php, line 481
Controller::render() - CORE/Cake/Controller/Controller.php, line 963
AppController::renderPage() - APP/Controller/AppController.php, line 136
BlogsController::display() - APP/Controller/BlogsController.php, line 81
ReflectionMethod::invokeArgs() - [internal], line ??
Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 118

Warning (2): include(/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.bodyTargeting.html) [<a href='http://php.net/function.include'>function.include</a>]: failed to open stream: No such file or directory [APP/View/Layouts/aarp_2023.ctp, line 243]
Code Context
            <?php if (!$nowrapper):  // MLW - Spanish wrappers TBD
                    include (APP . "Resource/aarp2_master.footer.html");
                    include (APP . "Resource/aarp2_master.bodyTargeting.html");
$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp'
$dataForView = array(
	'content_for_layout' => '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
',
	'scripts_for_layout' => '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }',
	'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP'
)
$content_for_layout = '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
'
$scripts_for_layout = '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$title_for_layout = '{local_city_c}, {local_state} Happenings - AARP'
$asset_version = '230831'
$min = true
$nowrapper = false
$css = '        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$highlighting = ''
$location = '<a href="/lansing-mi/?intcmp=CSN-LOCAL-NAV-HOME">Lansing, MI</a>'
$no_header = false
$header_title = '<a href="/lansing-mi/happenings/">News Feed</a>'
$header_subtitle = ''
$isPR = false
$navbar = '<nav class="section" role="button" aria-expanded="false" aria-controls="collapse">
	<div class="section-toggle">Sections <i class="fas fa-chevron-down"></i></div>
	<ul class="secondary-menu" id="secondary-menu" role="menu" aria-busy="true">
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/aarp-events/?intcmp=CSN-LOCAL-NAV-OLE" data-formelementid="LOCAL-LNK-CLK-EVENTS">Online & Local Events</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/things-to-do/?intcmp=CSN-LOCAL-NAV-TTD" data-formelementid="LOCAL-LNK-CLK-THINGSTODO">Things to Do</a></li>
		<li role="presentation" class="active"><a role="menuitem" class="menuitem" href="/lansing-mi/happenings/?intcmp=CSN-LOCAL-NAV-NF" data-formelementid="LOCAL-LNK-CLK-HAPPENINGS">News Feed</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/volunteering/?intcmp=CSN-LOCAL-NAV-VOL" data-formelementid="LOCAL-LNK-CLK-VOLUNTEERING">Volunteering</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-NAV-HC" data-formelementid="LOCAL-LNK-CLK-HC">Home & Community</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/movies/?intcmp=CSN-LOCAL-NAV-MFG" data-formelementid="LOCAL-LNK-CLK-MOVIESFORGROWNUPS">Movies for Grownups</a> </li>
		<li role="presentation" class="more nosep " id="submenu-more">
			<span role="menuitem" class="menuitem" data-formelementid="LOCAL-LNK-CLK-MORE">More<i class="fas fa-chevron-down"></i></span>
			<ul class="secondary-submenu animate slide-in" id="secondary-submenu">
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/discounts/?intcmp=CSN-LOCAL-NAV-LO" data-formelementid="LOCAL-LNK-CLK-OFFERS">Local Offers</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/local-resources/?intcmp=CSN-LOCAL-NAV-LR" data-formelementid="LOCAL-LNK-CLK-LOCALRESOURCES">Local Resources</a> </li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/jobs/?intcmp=CSN-LOCAL-NAV-WJ" data-formelementid="LOCAL-LNK-CLK-WORK&JOBS">Work & Jobs</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/events/?intcmp=CSN-LOCAL-NAV-CC" data-formelementid="LOCAL-LNK-CLK-EVENTS">Community Calendar</a></li>
				<!--
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/healthy-living/?intcmp=CSN-LOCAL-NAV-HEALTHY_LIVING" data-formelementid="LOCAL-LNK-CLK-HEALTHY_LIVING">Healthy Living</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/arts-entertainment/?intcmp=CSN-LOCAL-NAV-ARTS_ENT" data-formelementid="LOCAL-LNK-CLK-ARTS_ENT">Arts & Entertainment</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/museums/?intcmp=CSN-LOCAL-NAV-MUSEUMS" data-formelementid="LOCAL-LNK-CLK-MUSEUMS">Museums</a></li>
				-->
			</ul>
		</li>
		
	</ul>
</nav>'
$header_custom = ''
$breadcrumbs = array(
	(int) 0 => array(
		'title' => 'News Feed',
		'slug' => 'happenings'
	)
)
$row = array(
	'title' => 'Back to News Feed',
	'slug' => 'happenings'
)
$i = (int) 0
include - APP/View/Layouts/aarp_2023.ctp, line 243
include - APP/View/Layouts/aarp_2023.ctp, line 243
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::renderLayout() - CORE/Cake/View/View.php, line 546
View::render() - CORE/Cake/View/View.php, line 481
Controller::render() - CORE/Cake/Controller/Controller.php, line 963
AppController::renderPage() - APP/Controller/AppController.php, line 136
BlogsController::display() - APP/Controller/BlogsController.php, line 81
ReflectionMethod::invokeArgs() - [internal], line ??
Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 118

Warning (2): include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.bodyTargeting.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [APP/View/Layouts/aarp_2023.ctp, line 243]
Code Context
            <?php if (!$nowrapper):  // MLW - Spanish wrappers TBD
                    include (APP . "Resource/aarp2_master.footer.html");
                    include (APP . "Resource/aarp2_master.bodyTargeting.html");
$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp'
$dataForView = array(
	'content_for_layout' => '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
',
	'scripts_for_layout' => '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }',
	'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP'
)
$content_for_layout = '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
'
$scripts_for_layout = '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$title_for_layout = '{local_city_c}, {local_state} Happenings - AARP'
$asset_version = '230831'
$min = true
$nowrapper = false
$css = '        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$highlighting = ''
$location = '<a href="/lansing-mi/?intcmp=CSN-LOCAL-NAV-HOME">Lansing, MI</a>'
$no_header = false
$header_title = '<a href="/lansing-mi/happenings/">News Feed</a>'
$header_subtitle = ''
$isPR = false
$navbar = '<nav class="section" role="button" aria-expanded="false" aria-controls="collapse">
	<div class="section-toggle">Sections <i class="fas fa-chevron-down"></i></div>
	<ul class="secondary-menu" id="secondary-menu" role="menu" aria-busy="true">
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/aarp-events/?intcmp=CSN-LOCAL-NAV-OLE" data-formelementid="LOCAL-LNK-CLK-EVENTS">Online & Local Events</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/things-to-do/?intcmp=CSN-LOCAL-NAV-TTD" data-formelementid="LOCAL-LNK-CLK-THINGSTODO">Things to Do</a></li>
		<li role="presentation" class="active"><a role="menuitem" class="menuitem" href="/lansing-mi/happenings/?intcmp=CSN-LOCAL-NAV-NF" data-formelementid="LOCAL-LNK-CLK-HAPPENINGS">News Feed</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/volunteering/?intcmp=CSN-LOCAL-NAV-VOL" data-formelementid="LOCAL-LNK-CLK-VOLUNTEERING">Volunteering</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-NAV-HC" data-formelementid="LOCAL-LNK-CLK-HC">Home & Community</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/movies/?intcmp=CSN-LOCAL-NAV-MFG" data-formelementid="LOCAL-LNK-CLK-MOVIESFORGROWNUPS">Movies for Grownups</a> </li>
		<li role="presentation" class="more nosep " id="submenu-more">
			<span role="menuitem" class="menuitem" data-formelementid="LOCAL-LNK-CLK-MORE">More<i class="fas fa-chevron-down"></i></span>
			<ul class="secondary-submenu animate slide-in" id="secondary-submenu">
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/discounts/?intcmp=CSN-LOCAL-NAV-LO" data-formelementid="LOCAL-LNK-CLK-OFFERS">Local Offers</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/local-resources/?intcmp=CSN-LOCAL-NAV-LR" data-formelementid="LOCAL-LNK-CLK-LOCALRESOURCES">Local Resources</a> </li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/jobs/?intcmp=CSN-LOCAL-NAV-WJ" data-formelementid="LOCAL-LNK-CLK-WORK&JOBS">Work & Jobs</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/events/?intcmp=CSN-LOCAL-NAV-CC" data-formelementid="LOCAL-LNK-CLK-EVENTS">Community Calendar</a></li>
				<!--
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/healthy-living/?intcmp=CSN-LOCAL-NAV-HEALTHY_LIVING" data-formelementid="LOCAL-LNK-CLK-HEALTHY_LIVING">Healthy Living</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/arts-entertainment/?intcmp=CSN-LOCAL-NAV-ARTS_ENT" data-formelementid="LOCAL-LNK-CLK-ARTS_ENT">Arts & Entertainment</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/museums/?intcmp=CSN-LOCAL-NAV-MUSEUMS" data-formelementid="LOCAL-LNK-CLK-MUSEUMS">Museums</a></li>
				-->
			</ul>
		</li>
		
	</ul>
</nav>'
$header_custom = ''
$breadcrumbs = array(
	(int) 0 => array(
		'title' => 'News Feed',
		'slug' => 'happenings'
	)
)
$row = array(
	'title' => 'Back to News Feed',
	'slug' => 'happenings'
)
$i = (int) 0
include - APP/View/Layouts/aarp_2023.ctp, line 243
include - APP/View/Layouts/aarp_2023.ctp, line 243
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::renderLayout() - CORE/Cake/View/View.php, line 546
View::render() - CORE/Cake/View/View.php, line 481
Controller::render() - CORE/Cake/Controller/Controller.php, line 963
AppController::renderPage() - APP/Controller/AppController.php, line 136
BlogsController::display() - APP/Controller/BlogsController.php, line 81
ReflectionMethod::invokeArgs() - [internal], line ??
Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 118

Warning (2): include(/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.resource.footer.root.html) [<a href='http://php.net/function.include'>function.include</a>]: failed to open stream: No such file or directory [APP/View/Layouts/aarp_2023.ctp, line 244]
Code Context
                    include (APP . "Resource/aarp2_master.footer.html");
                    include (APP . "Resource/aarp2_master.bodyTargeting.html");
                    include (APP . "Resource/aarp2_master.resource.footer.root.html");
$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp'
$dataForView = array(
	'content_for_layout' => '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
',
	'scripts_for_layout' => '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }',
	'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP'
)
$content_for_layout = '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
'
$scripts_for_layout = '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$title_for_layout = '{local_city_c}, {local_state} Happenings - AARP'
$asset_version = '230831'
$min = true
$nowrapper = false
$css = '        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$highlighting = ''
$location = '<a href="/lansing-mi/?intcmp=CSN-LOCAL-NAV-HOME">Lansing, MI</a>'
$no_header = false
$header_title = '<a href="/lansing-mi/happenings/">News Feed</a>'
$header_subtitle = ''
$isPR = false
$navbar = '<nav class="section" role="button" aria-expanded="false" aria-controls="collapse">
	<div class="section-toggle">Sections <i class="fas fa-chevron-down"></i></div>
	<ul class="secondary-menu" id="secondary-menu" role="menu" aria-busy="true">
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/aarp-events/?intcmp=CSN-LOCAL-NAV-OLE" data-formelementid="LOCAL-LNK-CLK-EVENTS">Online & Local Events</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/things-to-do/?intcmp=CSN-LOCAL-NAV-TTD" data-formelementid="LOCAL-LNK-CLK-THINGSTODO">Things to Do</a></li>
		<li role="presentation" class="active"><a role="menuitem" class="menuitem" href="/lansing-mi/happenings/?intcmp=CSN-LOCAL-NAV-NF" data-formelementid="LOCAL-LNK-CLK-HAPPENINGS">News Feed</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/volunteering/?intcmp=CSN-LOCAL-NAV-VOL" data-formelementid="LOCAL-LNK-CLK-VOLUNTEERING">Volunteering</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-NAV-HC" data-formelementid="LOCAL-LNK-CLK-HC">Home & Community</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/movies/?intcmp=CSN-LOCAL-NAV-MFG" data-formelementid="LOCAL-LNK-CLK-MOVIESFORGROWNUPS">Movies for Grownups</a> </li>
		<li role="presentation" class="more nosep " id="submenu-more">
			<span role="menuitem" class="menuitem" data-formelementid="LOCAL-LNK-CLK-MORE">More<i class="fas fa-chevron-down"></i></span>
			<ul class="secondary-submenu animate slide-in" id="secondary-submenu">
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/discounts/?intcmp=CSN-LOCAL-NAV-LO" data-formelementid="LOCAL-LNK-CLK-OFFERS">Local Offers</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/local-resources/?intcmp=CSN-LOCAL-NAV-LR" data-formelementid="LOCAL-LNK-CLK-LOCALRESOURCES">Local Resources</a> </li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/jobs/?intcmp=CSN-LOCAL-NAV-WJ" data-formelementid="LOCAL-LNK-CLK-WORK&JOBS">Work & Jobs</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/events/?intcmp=CSN-LOCAL-NAV-CC" data-formelementid="LOCAL-LNK-CLK-EVENTS">Community Calendar</a></li>
				<!--
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/healthy-living/?intcmp=CSN-LOCAL-NAV-HEALTHY_LIVING" data-formelementid="LOCAL-LNK-CLK-HEALTHY_LIVING">Healthy Living</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/arts-entertainment/?intcmp=CSN-LOCAL-NAV-ARTS_ENT" data-formelementid="LOCAL-LNK-CLK-ARTS_ENT">Arts & Entertainment</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/museums/?intcmp=CSN-LOCAL-NAV-MUSEUMS" data-formelementid="LOCAL-LNK-CLK-MUSEUMS">Museums</a></li>
				-->
			</ul>
		</li>
		
	</ul>
</nav>'
$header_custom = ''
$breadcrumbs = array(
	(int) 0 => array(
		'title' => 'News Feed',
		'slug' => 'happenings'
	)
)
$row = array(
	'title' => 'Back to News Feed',
	'slug' => 'happenings'
)
$i = (int) 0
include - APP/View/Layouts/aarp_2023.ctp, line 244
include - APP/View/Layouts/aarp_2023.ctp, line 244
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::renderLayout() - CORE/Cake/View/View.php, line 546
View::render() - CORE/Cake/View/View.php, line 481
Controller::render() - CORE/Cake/Controller/Controller.php, line 963
AppController::renderPage() - APP/Controller/AppController.php, line 136
BlogsController::display() - APP/Controller/BlogsController.php, line 81
ReflectionMethod::invokeArgs() - [internal], line ??
Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 118

Warning (2): include() [<a href='http://php.net/function.include'>function.include</a>]: Failed opening '/var/www/vhosts/vcc_staging/app/Resource/aarp2_master.resource.footer.root.html' for inclusion (include_path='/var/www/vhosts/vcc_staging/lib:.:/usr/share/pear:/usr/share/php') [APP/View/Layouts/aarp_2023.ctp, line 244]
Code Context
                    include (APP . "Resource/aarp2_master.footer.html");
                    include (APP . "Resource/aarp2_master.bodyTargeting.html");
                    include (APP . "Resource/aarp2_master.resource.footer.root.html");
$viewFile = '/var/www/vhosts/vcc_staging/app/View/Layouts/aarp_2023.ctp'
$dataForView = array(
	'content_for_layout' => '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
',
	'scripts_for_layout' => '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }',
	'title_for_layout' => '{local_city_c}, {local_state} Happenings - AARP'
)
$content_for_layout = '<div class="row twoColumnLayout">
	<div class="col-md-8 left-rail"><div class="module clearfix"><div class="ar-basic-box">

	<div>    
		<div class="module-spacer">
			<header><h1 class="article-headline">Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</h1></header>	
						<div class="posted-on">
				Posted on 12/02/24 
				by <b>Careena Eggleston</b>			</div>
		</div>
		<div class="module-spacer">
			<span class="blog-content"><p><div class="RichTextArticleBody">
    
        <div class="RichTextArticleBody-body"><div class="Enhancement"   >
            
                <div class="Enhancement-item"><figure class="Figure"
     data-alignment="center">
    <img src="https://aarp-states.brightspotcdn.com/a0/3d/4160f528998b5046fa2df5e8c3b9/401k-2013-piggybank2.jpg" alt="401(K) 2013-piggybank2" width="1024" height="768"/>
    
    
</figure>
</div>
            
        </div><p><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/secure2024" target="_blank" rel="noopener noreferrer">The SECURE 2.0 Act of 2022</a></span></span> introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These changes, effective in 2024, allow easier access to retirement funds for emergencies and adjust required minimum distribution (RMD) rules. While the updates are helpful, it’s important to weigh the long-term impact of these decisions on your financial future.<br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Penalty-Free Emergency Withdrawals</h3></span></span><p>Starting in 2024, individuals can withdraw up to $1,000 annually from their 401(k) accounts for emergency expenses without facing the usual 10% early withdrawal penalty. This option is designed to assist with unexpected financial challenges like medical bills or car repairs. However, there are some important considerations:<br></p><ul><li>Repayment Requirement: The withdrawn amount must be repaid within three years. Failing to repay will make it taxable and could disqualify you from taking another emergency withdrawal until repayment is complete.</li><li>Eligibility Criteria: You must have at least $1,000 remaining in your 401(k) after the withdrawal. Additionally, not all employers may offer this option, as it is not mandatory for 401(k) plans.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Changes to Required Minimum Distributions (RMDs)</h3></span></span><p>The SECURE 2.0 Act also adjusts the rules around RMDs:<br></p><ul><li>RMD Age Threshold: The age at which individuals must start taking RMDs increased to 73 in 2023. This will rise further to 75 starting in 2033, allowing more time for retirement savings to grow.</li><li>Roth 401(k) Exemption: Beginning in 2024, Roth 401(k) accounts will no longer require RMDs during the owner’s lifetime, aligning them with Roth IRAs.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Other Noteworthy Updates</h3></span></span><p></p><ul><li>Catch-Up Contributions: Starting in 2024, catch-up contributions for individuals aged 50 and older will be indexed to inflation, which could allow for higher savings as the cost of living rises.</li><li>Student Loan Matching: Employers can match student loan payments with contributions to an employee’s retirement account, helping younger workers build retirement savings while managing debt.</li></ul><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">What Does This Mean for Michiganders?</h3></span></span><p>These updates provide more flexibility for managing retirement funds, but they come with risks. While accessing your 401(k) in emergencies is appealing, it’s important to consider the long-term impact on your financial security. Taking money from your retirement account, even penalty-free, could reduce the growth of your savings and potentially affect your future income.<br><br>Before making any withdrawals, consult with a financial advisor to ensure you’re making the best decision for your circumstances. Additional information is available from <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/trowe2024" target="_blank" rel="noopener noreferrer">T. Rowe Price</a></span></span> and <span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://aarpmi.org/fidsecure" target="_blank" rel="noopener noreferrer">Fidelity</a></span></span>.<br><br>By staying informed and planning carefully, you can make the most of these updates while safeguarding your retirement future.<br><br><br><br></p><span class="Enhancement" ><span class="Enhancement-item"><h3 class="inline-heading">Sources:</h3></span></span><p></p><ul><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.aarp.org/retirement/planning-for-retirement/info-2024/new-401k-withdrawal-rules.html" target="_blank" rel="noopener noreferrer">New 401(k) Rules Let You Withdraw $1,000 Without Penalty</a></span></span> – AARP</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs" target="_blank" rel="noopener noreferrer">Retirement Plan and IRA Required Minimum Distributions FAQs</a></span></span> – IRS</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.fidelity.com/learning-center/personal-finance/secure-act-2" target="_blank" rel="noopener noreferrer">Secure Act 2.0: Key Changes to Retirement Savings</a></span></span> – Fidelity</li><li><span class="Enhancement" ><span class="Enhancement-item"><a class="Link" href="https://www.barrons.com/articles/retirement-roth-401k-taxes-9301eba1" target="_blank" rel="noopener noreferrer">Roth 401(k) Changes: No More Required Minimum Distributions</a></span></span> – Barron’s</li></ul></div>
    
</div>
</p></span>
		</div>
	</div>

		<p><i>This story is provided by AARP Michigan. Visit the <a href="https://states.aarp.org/region/michigan/" target="_blank">AARP Michigan</a> page for more news, events, and programs affecting retirement, health care, and more.</i></p>
	
</div>
</div><div class="module clearfix"><script src="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.c85a242a55150cd195e494cd6e5b9c77.gz.js" async=""></script>
<link rel="stylesheet" media="all" href="https://aarp-states.brightspotcdn.com/resource/00000168-dd17-d487-a96e-df5fe3ee0000/styleguide/All.min.bfe6eb5a8301841feef3af4e9bd1e26d.gz.css">

<!-- bypass -->
<style>
a:focus, a:hover {
    text-decoration: underline;
}
h1.article-headline {
margin: 0 0 1rem;
}
</style>



<!--
<style>
.Enhancement-item .Figure {
margin-bottom: 24px;
}
.RichTextArticleBody-body ul {
    margin-bottom: 24px;
}
.RichTextArticleBody-body p{
    margin: 12px 0;
}
.RichTextModule-items {
   clear: both;
    display: table;
    width: 100%;
    margin-bottom: 12px;
}
.VideoEnhancement>* {
    color: var(--primaryTextColor);
    font-size: 13px;
    font-weight: 400;
    line-height: 1.4;
    font-style: italic;
    background: #f0efed
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement>* {
        font-size:14px;
        font-weight: 400;
        line-height: 1.47
    }
}

.VideoEnhancement-title {
    padding: 20px
}

@media only screen and (min-width: 768px) {
    .VideoEnhancement-title {
        padding:30px
    }
}

.VideoEnhancement-player>* {
    position: relative;
    width: 100%;
    height: 0;
    padding-bottom: 56.25%
}

.VideoEnhancement iframe {
    border: 0;
    position: absolute;
    top: 0;
    left: 0;
    width: 100%;
    height: 100%
}
[data-video-player] {
    display: block;
    padding-bottom: 56.25%;
    height: 0;
    margin: 0 auto;
}

[data-video-player][data-aspect-ratio="4x3"] {
    padding-bottom: 56.25%;
}

[data-video-player][data-aspect-ratio="16x9"] {
    padding-bottom: 56.25%
}
</style>
--></div><div class="module clearfix"><div class="module-spacer tout-homefit-750">
<a data-formelementid="CSN-LOCAL-HC-NEWSSK-02272024" 
	href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-HC-NEWSSK-02272024"><img class="img-responsive" 
	alt="Explore the free AARP HomeFit Guide" title="Explore the free AARP HomeFit Guide" 
	src="https://cdn-aarp.americantowns.com/img/touts/HomeFit_750x150.png"></a>
</div></div></div>
	<div class="col-md-4 right-rail thin-rhs"><div class="module clearfix"><!--default-->
<!-- module_RHS - AARP Events -->

<div class="ar-basic-box module-spacer">
	<header>
		<div class="pull-right">
			<a href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">
				<img style="width:30px;" src="https://cdn-aarp.americantowns.com/img/template/icons/aarp_event_icon.png" alt="Upcoming AARP Events" />
			</a>
		</div>
		<h2 class="visible-lg">AARP Events for Lansing</h2>
		<h2 class="hidden-lg">AARP Events for Lansing</h2>
	</header>
	<div class="wrap">
		<div class="ar-listing snippet">
			<ul class="list">
				<li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-holiday-movie-night-a-christmas-story-nnn4bv9vndl.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-AARP-HOLIDAY-MOVIE-NIGHT-A-CHRISTMAS-STORY">AARP Holiday Movie Night: ‘A Christmas Story’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024</p>
					<p class="venue">Swank Screening</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/meditation-moment-with-aarp-maine-december-2024-z4nk7w8kmxv.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-CALMING-10MINUTE-GUIDED-MEDITATION-MOMENT">Try a Calming 10-Minute Guided ‘Meditation Moment’</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 9:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li><li class="item" data-pageindex="1">

					
					<h2 class="title"><a href="/aarp-event/aarp-nc-charlotte-presents-zumba-gold-for-brain-health-12042024-at-11-am-et-j6nq6ybqbvy.html" data-formelementid="LOCAL-BTN-CLK-EVENTS-TRY-A-ZUMBA-GOLD-CLASS-FOR-FITNESS-AND-BRAIN-HEALTH">Try a Zumba Gold Class for Fitness and Brain Health</a></h2>
					<p class="time">Wednesday, Dec 4, 2024 at 11:00&nbsp;a.m. ET</p>
					<p class="venue">Zoom</p>
					<p class="loc">Online Event</p>
					
				</li>			</ul>

			<p><a class="link-red" href="/lansing-mi/aarp-events/" data-formelementid="LOCAL-BTN-CLK-SEEALL-EVENTS">View All AARP Events<i class="ml-1 fas fa-chevron-right"></i></a></p>
	
		</div>
	</div>
</div>


<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_53475" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_53475', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="card-tout card-dark membership-tout" style="margin:0 0 30px 0;">
	<img class="img-responsive image" 
		title="image of two AARP membership cards"
		alt="image of two AARP membership cards" 
		src="https://cdn-aarp.americantowns.com/img/tout-two-cards.png">
	<div class="title">Only $12 your first year with Automatic Renewal</div>
	<ul class="list">
		<li>Immediate access to your <a href="https://www.aarp.org/benefits-discounts/">member benefits</a></li>
		<li>Discounts on travel and everyday savings</li>
		<li>Subscription to AARP The Magazine</li>
		<li>FREE second membership</li>
	</ul>
	<div class="action">
		<a class="btn" href="https://appsec.aarp.org/mem/join?campaignid=UAJFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Join AARP</a>
		<div class="body">Already a member? <a href="https://appsec.aarp.org/mem/renew?campaignid= UARFT3&intcmp=LNK-CSN-AARPLOCAL-JRTOUT-RR-A-LANSING-MI">Renew</a> or 
			<a href="https://www.aarp.org/benefits-discounts/my-membership/print-your-card/">Print Card</a></div>
	</div>
</div>
<style>
.membership-tout {padding:16px 20px;}
.membership-tout .list li { margin: 0; }
</style>
<div aria-hidden="true" class="aarpe-ad-wrapper">
                    
                    <div class="aarpe-ad en clearfix" id="300x250_93505" data-adsize="300x250">
                        
                         
                            <script type="text/javascript">
                                if(typeof AARP.ads !== 'undefined'){
                                  AARP.ads.slots({ id:'300x250_93505', size:'300x250'});
                                }
                            </script>
                         
                    </div>
                </div>
<div class="module-spacer text-center">
<div class="fb-page" alt="Image of AARP Michigan Facebook Page" title="Image of AARP Michigan Facebook Page" data-href="https://www.facebook.com/aarp.michigan" data-tabs="timeline" width="320" height="" data-small-header="false" data-adapt-container-width="true" data-hide-cover="false" data-show-facepile="true" lazy="true">
	<blockquote cite="https://www.facebook.com/aarp.michigan" class="fb-xfbml-parse-ignore"><a href="https://www.facebook.com/aarp.michigan">Facebook</a></blockquote>
</div>
</div>


<div class="ar-basic-box module-spacer">
<header>
<h2>Contact AARP <br />in Lansing</h2>
</header>
<div class="wrap">

<div class="ar-quick-list module-spacer">
<ul class="list-unstyled">
<li><i class="list-icon fa fa-envelope" alt="Email icon" title="Email icon" aria-hidden="true"></i><a href="mailto:MIAARP@aarp.org" target="_blank" rel="noopener">MIAARP@aarp.org</a></li>

<li><i class="list-icon fa fa-globe" alt="Globe icon" title="Globe icon" aria-hidden="true"></i><a href="https://states.aarp.org/region/michigan/" target="_blank" rel="noopener">AARP Michigan</a></li>

<li><i class="list-icon fa fa-map-marker" alt="Map Marker icon" title="Map Marker icon" aria-hidden="true"></i><a href="https://states.aarp.org/welcome-to-aarp-michigan/?intcmp=SNG-LNK-AARPLOCAL-CONTACT-20140101-LANSING-MI" target="_blank" rel="noopener">Contact Us</a></li>

</ul>
</div>

<a href="https://www.facebook.com/aarp.michigan" target="_blank" rel="noopener" aria-label="Open Facebook"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/facebook-dreamstale25.png" alt="Facebook icon" title="Facebook icon"></a>&nbsp;&nbsp;
<a href="https://twitter.com/AARPMichigan" target="_blank" rel="noopener" aria-label="Open Twitter"><img src="https://cdn-aarp.americantowns.com/img/responsive/icons/48/x-logo-black.png" alt="Twitter icon" title="Twitter icon"></a>
&nbsp;&nbsp;<a href="https://www.instagram.com/aarpmichigan/" target="_blank" rel="noopener" aria-label="Open Instagram"><img src="https://cdn-aarp.americantowns.com/img/icon-ig.png" alt="Instagram icon" title="Instagram icon" style="height: 49px;"></a>

</div>
</div>

 
</div></div>
	<div class="col-md-8 left-rail left-bot"></div>
	<div class="col-md-4 right-rail right-bot thin-rhs"></div>
</div>
<div class="row oneColumnLayout">
	</div>
<div class="row oneColumnLayout">
	<div class="col-md-12"><!-- script to activate navbar -->
	<script type="text/javascript">
		jQuery(".channelBarMain ul.left li a").click(function() {
			window.location = jQuery(this).attr('href');
		});
	</script>
</div>
</div>
'
$scripts_for_layout = '<title>Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?</title>
<meta name="page_title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="robots" content="noindex, nofollow"/>
<meta content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans." name="description"/>
<meta content="Understanding, New, 401, k, Withdrawal, Rules, Flexibility, or, Risk" name="keywords"/>
<link rel="canonical" href="https://states.aarp.org/michigan/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk" />
<meta property="og:url" content="https://vccstaging.local.aarp.org/news/understanding-the-new-401k-withdrawal-rules-flexibility-or-a-risk-mi-2024-12-02.html"/>
<meta name="twitter:card" content="summary_large_image"/>
<meta name="twitter:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta name="twitter:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta name="twitter:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
<meta property="og:type" content="article"/>
<meta property="og:title" content="Understanding the New 401(k) Withdrawal Rules: Flexibility or a Risk?"/>
<meta property="og:description" content="The SECURE 2.0 Act of 2022 introduced major updates to retirement savings, offering greater flexibility for individuals managing their 401(k) plans. These"/>
<meta property="og:image" content="https://aarp-states.brightspotcdn.com/dims4/default/a3a1c2d/2147483647/strip/true/crop/1024x658+0+55/resize/420x270!/quality/90/?url=http%3A%2F%2Faarp-brightspot.s3.amazonaws.com%2Fstates%2Fa0%2F3d%2F4160f528998b5046fa2df5e8c3b9%2F401k-2013-piggybank2.jpg"/>
        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$title_for_layout = '{local_city_c}, {local_state} Happenings - AARP'
$asset_version = '230831'
$min = true
$nowrapper = false
$css = '        :root {
        --primaryColor: #ff1e3c;
        --primaryTextColor: #2a2a2a;
        --linkTextColor: #1f66bd;
        --linkHoverColor: #1f66bd;
        --secondaryTextColor: #000000;
        --secondaryColor2: #000000;
        --secondaryColor3: #000000;
        --secondaryColor4: #000000;
        --secondaryColor5: #000000;
        --black: #000000;
        --white: #ffffff;
        --grey: #f0efed;
        --gridGutters: 30px;
        --modulePadding: 60px;
        --pageWidth: 86.11%;
        --maxPageWidth: 1240px;
        --horizontalAlignment: center;
        --fontFamily: 'Roboto', sans-serif;
        --headerBackgroundColor:#000000;
        --headerTextColor:#FFFFFF;
        --headerHeight:50px;
        --footerbackgroundColor:#000000;
        --footerTextColor:#918883;
        }'
$highlighting = ''
$location = '<a href="/lansing-mi/?intcmp=CSN-LOCAL-NAV-HOME">Lansing, MI</a>'
$no_header = false
$header_title = '<a href="/lansing-mi/happenings/">News Feed</a>'
$header_subtitle = ''
$isPR = false
$navbar = '<nav class="section" role="button" aria-expanded="false" aria-controls="collapse">
	<div class="section-toggle">Sections <i class="fas fa-chevron-down"></i></div>
	<ul class="secondary-menu" id="secondary-menu" role="menu" aria-busy="true">
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/aarp-events/?intcmp=CSN-LOCAL-NAV-OLE" data-formelementid="LOCAL-LNK-CLK-EVENTS">Online & Local Events</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/things-to-do/?intcmp=CSN-LOCAL-NAV-TTD" data-formelementid="LOCAL-LNK-CLK-THINGSTODO">Things to Do</a></li>
		<li role="presentation" class="active"><a role="menuitem" class="menuitem" href="/lansing-mi/happenings/?intcmp=CSN-LOCAL-NAV-NF" data-formelementid="LOCAL-LNK-CLK-HAPPENINGS">News Feed</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/volunteering/?intcmp=CSN-LOCAL-NAV-VOL" data-formelementid="LOCAL-LNK-CLK-VOLUNTEERING">Volunteering</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/home-and-community/?intcmp=CSN-LOCAL-NAV-HC" data-formelementid="LOCAL-LNK-CLK-HC">Home & Community</a> </li>
		<li role="presentation" class=""><a role="menuitem" class="menuitem" href="/lansing-mi/movies/?intcmp=CSN-LOCAL-NAV-MFG" data-formelementid="LOCAL-LNK-CLK-MOVIESFORGROWNUPS">Movies for Grownups</a> </li>
		<li role="presentation" class="more nosep " id="submenu-more">
			<span role="menuitem" class="menuitem" data-formelementid="LOCAL-LNK-CLK-MORE">More<i class="fas fa-chevron-down"></i></span>
			<ul class="secondary-submenu animate slide-in" id="secondary-submenu">
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/discounts/?intcmp=CSN-LOCAL-NAV-LO" data-formelementid="LOCAL-LNK-CLK-OFFERS">Local Offers</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/local-resources/?intcmp=CSN-LOCAL-NAV-LR" data-formelementid="LOCAL-LNK-CLK-LOCALRESOURCES">Local Resources</a> </li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/jobs/?intcmp=CSN-LOCAL-NAV-WJ" data-formelementid="LOCAL-LNK-CLK-WORK&JOBS">Work & Jobs</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/events/?intcmp=CSN-LOCAL-NAV-CC" data-formelementid="LOCAL-LNK-CLK-EVENTS">Community Calendar</a></li>
				<!--
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/healthy-living/?intcmp=CSN-LOCAL-NAV-HEALTHY_LIVING" data-formelementid="LOCAL-LNK-CLK-HEALTHY_LIVING">Healthy Living</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/arts-entertainment/?intcmp=CSN-LOCAL-NAV-ARTS_ENT" data-formelementid="LOCAL-LNK-CLK-ARTS_ENT">Arts & Entertainment</a></li>
				<li role="presentation"><a role="menuitem" class="menuitem " href="/lansing-mi/museums/?intcmp=CSN-LOCAL-NAV-MUSEUMS" data-formelementid="LOCAL-LNK-CLK-MUSEUMS">Museums</a></li>
				-->
			</ul>
		</li>
		
	</ul>
</nav>'
$header_custom = ''
$breadcrumbs = array(
	(int) 0 => array(
		'title' => 'News Feed',
		'slug' => 'happenings'
	)
)
$row = array(
	'title' => 'Back to News Feed',
	'slug' => 'happenings'
)
$i = (int) 0
include - APP/View/Layouts/aarp_2023.ctp, line 244
include - APP/View/Layouts/aarp_2023.ctp, line 244
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::renderLayout() - CORE/Cake/View/View.php, line 546
View::render() - CORE/Cake/View/View.php, line 481
Controller::render() - CORE/Cake/Controller/Controller.php, line 963
AppController::renderPage() - APP/Controller/AppController.php, line 136
BlogsController::display() - APP/Controller/BlogsController.php, line 81
ReflectionMethod::invokeArgs() - [internal], line ??
Controller::invokeAction() - CORE/Cake/Controller/Controller.php, line 491
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 193
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 118