Birthdays can tend to feel a bit less noteworthy as you grow older. There's just nothing quite like getting your driver's license at 16, or having the opportunity to vote at 18. However, beginning at age 50, there are several milestone birthdays that can impact your specific financial and tax situation that you should be aware of:
- 50 Allows for catch-up contributions to IRAs and qualified retirements plans.
- 55 If you are retired, allows you to take distributions from your 401(k) without the 10% penalty
- 59½ Allows you to take distributions from an IRA, annuity, or other retirement plan without penalty
- 60 Allows for start of widow/ widower benefits from Social Security
- 62 Allows for starting early Social Security benefits
- 65 Allows for enrollment in Medicare and the government drug plan
- 65-67 Allows for full retirement benefits from Social Security
- 70 Start date for enhanced Social Security benefits if you deferred claiming benefits previously.
- 72 Mandatory required minimum distribution from retirement accounts must be taken no later than April 1st of the year after the year you turn 72.
It is very important as you plan for (or reach) any of these milestone birthdays that we meet to review your specific situation and discuss what strategies would be best for you. If you have any questions on your situation call us at (559) 432-3877 or ask at your next review.