There are a handful of milestone ages that could impact your retirement game plan.

Here’s a breakdown of the important considerations and to-dos that occur with the following retirement milestone ages:

  • Age 59 1/2: You can start to withdraw money from your IRA, 401K and other retirement accounts without penalty. Any money withdrawn before this age will result in a 10% fee.
  • Age 62: This is the first year you’re eligible to claim Social Security benefits.
  • Age 65: At this age, you officially qualify for Medicare. It’s important to enroll on time-every year you’re eligible and aren’t enrolled, your part B premiums increase by 10%.
  • Age 66/67: Depending on what year you were born, your full retirement age will be 66 or 67. This is when you become eligible for your full Social Security benefit amounts instead of a reduced benefit amount.
  • Age 70: At this age, you qualify for Maximum Social Security benefits. If you wait until 70 to claim your benefits, you’ll get a larger check every month. Be sure to understand how this decision could impact your taxes, Medicare premiums and other benefits.
  • Age 73 (as of 2023): mandatory withdrawals from your IRA, 401K, and other tax-deferred accounts start this year. These are known as Required Minimum Distributions or RMD’s. Making a mistake or missing one comes with a 25% penalty.

Ignoring these critical retirement milestones could result in significant financial consequences.

To learn more about how we can help you make the most of your money in retirement, Call (817) 431-2217 or email us at lindsey@sullivanfinancialpartners.com

 

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