Savvy Financial Milestone Reminders

In preparation for your future-you, let me share some milestone dates of importance. These are current rules but are subject to change with acts of Congress and the IRS.

• At age 59.5+, without an early withdrawal penalty being applied, you may withdraw funds from any IRA, 401(k), or 403(b) you hold.

• Age 62, eligible for early Social Security benefits (this will forever reduce your benefit and is rarely the best strategy!)

• At age 65, Medicare eligibility begins. Sign up promptly (3 months before your 65th birthday up to 3 months after) to avoid any gaps in coverage or potential late enrollment penalties.

• At approximately age 67 (this age is adjusted by the year you were born), Social Security benefits pay at 100% of your insured amount. This is called FRA (Full Retirement Age). 

• Age 70, this is the maximum age to begin taking Social Security benefits. You will receive 100% of your FRA benefit + up to an additional 32%!  

• Age 73 - 75 (this age is adjusted by the year you were born), RMD (Required Minimum Distributions) must begin and are taken from any qualified accounts like an IRA, 401(k), or 403(b) that you hold. You must elect to have RMDs distributed and failure to do so results in a heavy penalty fee to the IRS.

Again, these rules are currently in effect but are subject to change with acts of Congress and the IRS.