Retirement is the biggest financial goal for most people. Careful planning can help maximize outcomes and give you confidence about your future. Whether you are already retired, or still planning, here are some key ages to keep in mind.
Catch-up contribution age. You can contribute to many retirement accounts beyond the normal limit beginning the year you turn 50. For example, the annual IRA contribution limit is $6,000 but starting at age 50 you can contribute an additional $1,000. In a 401(k), you can contribute $19,500 plus an additional $6,500.
Penalty-free withdrawals. You can start taking withdrawals from qualified retirement plans such as 401(k)s, 403(b)s and profit sharing plans after you left your employer in the year you turn 55 or later.
59 1/2 Years
IRA withdrawal age. You can take penalty-free withdrawals from IRAs and other qualified retirement plans.
You can start taking reduced Social Security benefits.
64 Years, 9 Months
Medicare sign-up age. You should sign up for Medicare hospital insurance 3 months before your 65th birthday, whether or not you want to begin receiving Social Security benefits.
Social Security benefits age. You can begin taking Social Security benefits depending on your birth year. You can increase your retirement benefits by delaying up to age 70.
RMD age. You must begin taking required minimum distributions (RMDs) from most retirement accounts. The SECURE Act in 2019 changed the RMD rules. If you reached the age of 70 1/2 in 2019, the old rule applies. Otherwise, you must take your first RMD by April 1 of the year after you reach 72.
To learn more about how to plan for retirement, contact an advisor today!