Milestone Financial Planning Birthdays

Age 50 – At 50 you are now eligible for catch up provisions on our retirement accounts. In 2019 in an IRA instead of the max contribution being $6k, if you are 50+ and otherwise eligible, you may be able to invest an extra $1k. In a 401k, 403b, or 457, investors age 50+ can put an additional $6k away for a maximum deferral of 25k vs $19k for those 49 and younger.

Age 55 – An age 55, early retiree, can withdraw from their 401k without the early-withdrawal penalty tax

Age 591/2. Only the IRs and Children younger than 10 track ? birthdays. Gotta love it.

This is the age when you may be able to withdrawal from eligible retirement plans without a 10% early withdraw penalty. 

It is also the age that most company sponsored retirement plans will allow a participant to move a portion of their plan assets to an IRA of their choice via a tax free transfer or take a distribution in cash from a portion of their plan assets which may have additional tax implications.

Age 60

Widows and widowers may be able to collect reduced social security benefits. This is an opportunity for additional income that many miss because they are not aware if it.

Age 62

This is the age when most client are eligible to receive social security benefits. We do a lot of work with clients to help guide them towards what we think will be the best option for them when it comes to social security claiming strategies. Definitely get some help on this one from a qualified professional.

Age 65

Medicare eligibility begins. Even if you have other primary coverage, you want to consider enrolling at age 65, otherwise you may end up with a gap in coverage down the road.

70 ?

Here we are again with the ? birthday

At 70 ? we must start spending down our pre-tax retirement assets through what the IRS calls required minimum distributions. This is one you don’t want to miss as the IRA can impose a 50% penalty of you fail to take the required amount from your plan or plans.

As always, if you have any questions, comments or suggestions for future topics, I’d love to hear from you. Always here to help.