Are you celebrating a retirement milestone birthday this year?
There might be more than just birthday cake and presents for your birthday this year. If you or someone you know is celebrating one of the milestone ages below, you may have some important information to think about as you’re considering your retirement income sources.
Catch-up contributions may be made to IRAs and qualified retirement plans.
At 55, you are eligible to take money penalty-free from 401 (k) plans if you leave your job or retire.
You can withdraw money from an IRA without paying a penalty regardless if you leave your job or retire.
This is the earliest age you can apply for Social Security benefits. Waiting as long as possible through age 70 will provide increased benefits.
Even if you don’t plan to go on Social Security quite yet, age 65 is the time you want to sign up for Medicare.
This is the latest you can start Social Security. Apply now to get the maximum benefit.
You must begin taking the required minimum distributions from IRAs and 401 (k) plans by April 1 of the year after you turn 70 ½.
Planning and saving for your retirement is a lifelong process. As you begin to celebrate these milestones, however, the decisions you make will have a big influence on your financial security in retirement. It’s important to know the rules around IRA’s, retirement plans, and government programs like Social Security and Medicare. Working with a qualified tax professional or financial advisor can help you navigate these rules and make the most of your life@retirement.
First Commonwealth Advisors is a registered trademark of First Commonwealth Bank for investment management, trust and fiduciary services and for investment advisory services provided by First Commonwealth Financial Advisors, a registered investment advisory affiliate. Certain insurance products are offered through First Commonwealth Insurance Agency, a licensed insurance affiliate. Securities, insurance products and certain other advisory services are offered through Essex National Securities LLC, member FINRA/SIPC and an SEC registered investment advisor. Essex is not affiliated with First Commonwealth Bank.