Important Birthdays Over 50
Getting older has its perks! Not only do you become eligible to receive senior discounts, but once you reach age 50, there are some birthdays and "half-birthdays" that are critical to remember to take advantage of. Check them out below.
Catch-Up Contributions - Retirement plan participants are now able to contribute additional money each year.
Penalty Free Retirement Plan Withdrawals - Keep in mind that distributions from traditional IRAs and employer sponsored plans will still be taxed as ordinary income.
Social Security - It is important to know that if taken now, benefits may be reduced. Full retirement age had been 65 for many years. However, beginning with individuals born in 1938 or later, that age gradually increases until it reaches 67 for individuals born after 1959.
Medicare - The Social Security Administration recommends applying three months before turning 65. Remember that if you already receive Social Security benefits, then you are already enrolled in Medicare Part A & Part B.
Required Minimum Distribution (RMD) - Distributions must be taken from traditional IRAs and qualified retirement plans by April 1st the year following the calendar year in which you reach age 70.5. We encourage clients to take the distribution the year in which they turn 70.5 to avoid having to take two in one year. Dollar amounts for RMDs are based on account balance and life expectancy tables.