Birthdays are not just a time to blow out candles and have chocolate cake. Certain milestones present special tax and investment questions to consider.
Age 50 – Catch-up contributions may be made to IRAs and qualified retirement plans
Age 55 – Penalty-free distributions may be taken from 401(k) plans if retired. Catch-up contributions may be made to HSAs.
Age 59 ½ – Penalty-free distributions may be taken from IRAs and qualified plans and from Roth IRAs if account has been open at least five years.
Age 60 – Application may be made for early Social Security benefits by widows or widowers claiming benefits under spouse’s earnings record.
Age 62 – Application may be made for early Social Security benefits under own earnings record; amount will be reduced
Age 65 – Full retirement age for unreduced Social Security
Age 70 – Apply for Social Security to get maximum benefit
Age 70 ½ – Must start required minimum distributions from IRA.
I’m always happy to talk to anyone you know about these important birth dates.
Key Birthdays in 2014
