Retirement Milestones to Remember


Retirement Milestones to Remember

Posted by RDW Financial Group
1 year ago | April 17, 2017

One of the most important things to remember about retirement planning is that it’s a marathon, not a sprint. And as you “run” that marathon, you’re going to pass many milestones along the way. Since these milestones often represent valuable opportunities, you don’t want to miss anything. Plus, once you retire, you aren’t finished. You will continue to pass important milestones even after you stop working.

December 31 of each year. Contributing to a qualified retirement account is one of the best ways to save for retirement, while reaping important tax benefits. You have until December 31 of each year to max out your contributions for the year.

Mid-April of each year. The deadline for filing federal income taxes falls in mid-April each year. This is also the deadline for making IRA contributions for the previous year, so be sure to reach the maximum if you can.

Age 62. You can file for Social Security benefits as early as age 62. However, filing for benefits early, before your “full retirement age” will result in smaller checks for the rest of your life. For some people, it’s worth it, but consider this issue carefully before making a permanent decision.

Age 65. At age 65, you become eligible for Medicare. Remember to file for your benefits right away, because those who miss the deadline are charged a higher premium for the rest of their lives.

October 15 to December 7 of each year. When you sign up for Medicare, you can choose from several different plans. But you’re not stuck with that choice forever! If your plan isn’t working well for you, or you feel as though a different one might provide better benefits, you can make changes during this annual Open Enrollment period.

Age 70 1/2. You will probably begin taking distributions from your retirement account when you stop working, which for most people is sometime in their mid-60s. However, some people choose to wait a bit longer to take distributions, or they’re even still working at age 70 or so. Just remember that the rules of most retirement plans require you to begin taking minimum distributions by April following the year in which you turn 70 ½.

For some people this might mean taking two distributions in the same year, since the next one is due by December 31. This can be a complicated issue, triggering serious tax consequences, so continue to work closely with us once you retire. We can help you make a retirement income plan that works for you, while avoiding excessive taxes or penalties.

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