When can you access your savings without a penalty? When should you enroll in Medicare? At what age is it best to collect Social Security? <\/p>\n\n\n\n
In the years leading up to retirement, there are a number of key milestones and deadlines to consider. Without careful attention, it’s easy to miss these checkpoints and the consequences can be severe. Let’s delve into eight crucial moments to help you stay on track.<\/p>\n\n\n\n
Once you turn 50, the IRS may permit you to make yearly “catch-up contributions.” These are additional amounts you can contribute to your 401(k)s and IRAs beyond the standard annual limits. This option is designed to help you save more for retirement. Unfortunately, not enough pre-retirees take advantage of this. <\/p>\n\n\n\n
In 2023, you’re allowed to contribute $22,500 into a 401(k) and $15,500 into a SIMPLE 401(k). With the catch-up option, you can add an additional $7,500 to the 401(k) and $3,500 to the SIMPLE 401(k)1<\/sup>.<\/p>\n\n\n\n Typically, making an early withdrawal from a workplace retirement plan can result in a penalty. But there are exceptions to this rule, and the rule of 55 is one such example.<\/p>\n\n\n\n If you turn 55 during the calendar year you lose or leave your job, you may be eligible to begin taking distributions from your 401(k) without paying a penalty. However, you must still pay taxes on your withdrawals2<\/sup>.<\/p>\n\n\n\n Remember when you used to celebrate your half-birthday? While those days are likely behind you, turning 59\u00bd might be a milestone worth acknowledging. <\/p>\n\n\n\n The reason? After turning 59\u00bd, you can generally take out money from employer-sponsored retirement plans and IRAs without the 10% early withdrawal penalty. However, regular income tax may still apply to these withdrawals. There are some exceptions to this rule, so make sure to discuss your situation with your tax advisor3<\/sup>.<\/p>\n\n\n\n At 62, you\u2019re eligible to start receiving Social Security. But if you opt for benefits before reaching your full retirement age (the age where you can claim 100% of your benefits), your monthly amount can be permanently reduced. It’s advisable to consult with a financial professional to determine the best age for you to begin collecting Social Security benefits.<\/p>\n\n\n\n At this age, the majority of Americans qualify for Medicare, which covers a significant portion of doctor visits, hospital care, and other medical services. However, Medicare is divided into various parts – A, B, C, and D. Navigating the enrollment and benefits for each part can be intricate, so consider seeking professional guidance. <\/p>\n\n\n\nAge 55: Know the Rule of 55<\/strong><\/h2>\n\n\n\n
Age 59 \u00bd: Say Goodbye to the Early Withdrawal Penalty<\/strong><\/h2>\n\n\n\n
Age 62: You\u2019re Eligible to Start Claiming Social Security <\/strong><\/h2>\n\n\n\n
Age 65: It\u2019s Time for Medicare Enrollment <\/strong><\/h2>\n\n\n\n
Age 66-67: Full Retirement Age<\/strong><\/h2>\n\n\n\n