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Hitting the Important Age Milestones

Age 50

Ready to boost your retirement savings? When you turn 50, you can contribute more to your 401(k) or other retirement plan. In 2023, the maximum contribution limit is $22,500 with an additional $6,500 catch-up contribution allowed for those turning age 50 or older.

This applies to IRAs too! The 2023 contribution limit is $6,500, with the option to add a catch-up contribution of $1,000, for a total of $7,500 if you’re over 50.

If you’re looking to boost your retirement savings, reach out to your advisor at Eukles and see how we can help achieve your maximum contributions!

Age 59 ½

Finally! Penalty-free withdrawals! Starting at age 59½, you can take withdrawals without penalties, although it’s worth noting that taxes may be due based on the type of your IRA. At this age it’s important to consider talking to your financial advisor about creating an retirement income plan.

It can also be a good time to consider consolidating old 401(k)s from previous employers and IRAs. Doing so can make it easier to track and organize your investments and potentially help reduce taxes and fees.

Age 62

Thinking about taking Social Security early? At 62, you’re able to start receiving your Social Security benefit. However, doing so can reduce your monthly benefits by 30% versus waiting until your Social Security full retirement age (FRA—the age when you are entitled to 100 percent of your Social Security benefits, which are determined by your lifetime earnings).

Keep in mind that the reduction is permanent, so make sure to talk to your financial advisor to help you with this decision.

Visit the Social Security website to get personalized retirement estimates.

Age 65

It’s time to sign up for Medicare! You’ll want to get the timing right on this. Medicare’s initial enrollment period lasts seven months, starting 3 months before you turn 65, and ending 3 months after the month you turn 65. If you miss your 7-month Initial Enrollment Period, you may have to wait to sign up and pay a monthly late-enrollment penalty.

Need help? Talk to your financial advisor at Eukles to get some insight on tools you can use to help you sign up for Medicare.

Age 67

You’ve hit Full Retirement Age (FRA)! FRA is the age when you are entitled to 100% of your Social Security benefits, which are determined by your lifetime earnings. The amount you receive when you first get benefits sets the base for the amount you will receive for the rest of your life.

You can increase your retirement benefits by waiting past your Full Retirement Age to retire. Each month you put off filing up to age 70 earns you delayed retirement credits that boost your eventual benefit.

Age 73

Time to start taking your Required Minimum Distributions (RMDs). RMDs are minimum amounts that a retirement-plan account owner must withdraw annually starting with the year that you turn 73.

The requirement allows the government to finally tax the money, which has been growing tax-deferred to encourage saving for retirement. Investors who fail to take an RMD may face a penalty, equal to 25% of the amount they didn’t withdraw, so be sure to talk to your financial advisor to ensure you don’t miss an RMD!