Milestone Birthday Financial Tasks

If you have a milestone birthday coming up, consider the following financial changes…

​Age 50
You may be eligible to make catch-up contributions to an IRA and/or employer plan (401k, 403b, etc.). At age 50, you can contribute $1,000 beyond the standard limit, while the catch-up amount for employer plans allows an added $7,500 contribution.
 
Age 55
Health Savings Account (HSA) catch-up contributions begin at age 55, allowing for $1,000 more to be put away per individual. Age 55 also allows those who lose or leave their jobs to withdraw from their current job’s 401k/403b without the 10% tax penalty. And of course, check on those senior discounts that may become available to you!
 
Age 59 ½
Eligibility begins for taking penalty-free distributions from IRA’s and employer plans. You can also take tax-free distributions of earnings for Roth IRA’s that have been open at least 5 years.
 
Age 62
You can begin taking Social Security income benefits. However, benefit amounts can be limited if taking at this earliest age opportunity. Consider your overall finances before making this decision.
 
Age 65
You are eligible to apply for Medicare benefits.
 
Age 70
If you haven’t already, start taking Social Security benefits, as benefits don’t get any larger after age 70.
 
Age 73
Required Minimum Distributions (RMD’s) are generally needed at this point. Work with your financial advisor to determine what’s needed for your individual accounts.