Age Milestones in Retirement Planning
By: Allison Schmidt, Financial Advisor, CFP®, CPA
Age matters when it comes to retirement planning, so we put together a list of key retirement planning ages as a quick snapshot.
50: Ability to make catch-up contributions
- 2019 401k: You can contribute an additional $6k into your 401k, $19k limit increased to $25k.*
- 2019 IRA: You can contribute an additional $1k into your IRAs, $6k limit increased to $7k.*
55: Penalty-free 401(k) withdrawals available to early retirees.
- Workers who leave their jobs in the year they turn 55 or older can withdraw money from their 401(k) without having to pay the 10% penalty.
59.5: Penalty-free IRA withdrawals
62: Earliest date to receive Social Security benefits.
- This is the earliest date to receive benefits, but remember that the benefit will be reduced based on the time you draw before your full retirement age (age 66-67).
- Poor health is a good reason to explore this option.
66: Full Social Security benefits for those born between 1943-1954
67: Full Social Security benefits for those born after 1960
70: Max Social Security benefits available
- This is the latest date to start drawing social security. You will receive a benefit increase of 8% per year for each year you wait to receive your benefit after your full retirement age (age 66-67) up until age 70.
70.5: Required minimum distributions start (as of now)
- There is a piece of legislation through the House and currently in the Senate, the SECURE act. The SECURE act proposes a number of different retirement plan changes, one of which being the required minimum distribution from your IRA or 401k be delayed from age 70.5 to age 72.^
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through HD Wealth Strategies, a registered investment advisor and separate entity from LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
