We laid out several of the key milestones to be aware of & prepared for as you go through your retirement.
Planning and staying on track throughout each of these milestones will allow you to enjoy and live your senior years to the fullest. We have laid out each step along the way...
Age 50: You are eligible to make catch-up contributions to 401(k)s or IRAs. In 2021, that is an extra $6,500 to your 401(k) plus $1,000 to your IRA.
Age 55: If you are eligible to participate in a health savings account (HSA), you are entitled to $1K in catch-up contributions.
Age 59 1/2: You can roll over your 401(k) into an IRA plus you qualify to make withdraws from your 401(k) and IRA without being penalized.
Age 62: This is the earliest age you are eligible to sign up for Social Security, but it will result in a lifelong reduction of your monthly payments.
Age 65: You are eligible for Medicare.
Age 70: It's time to start claiming Social Security, if you haven't already. Delayed retirement credits stop accruing, so there is no longer a financial gain in holding off any longer.
Age 72: This is when required minimum distributions, or RMDs, kick in on traditional IRAs and pre-tax money in 401(k)s. You can always withdraw more than the required minimum. Keep in mind these withdraws will be included in your taxable income unless it has already been taxed or can be received tax-free. RMDs do not apply to Roth IRAs or non-qualified accounts.
Following this path will help you make the most of your savings and enjoy every moment of your life in retirement. Because you deserve it!