» Age-Related Financial Planning Milestones Approach as People Enter Their Sixties

Age-Related Financial Planning Milestones Approach as People Enter Their Sixties

White Plains, NY (Law Firm Newswire) April 25, 2014 - As one nears retirement age, a number of important financial planning milestones begin to approach. It can be difficult to keep them all straight, so here is a timeline of what happens when.

At age 59 1/2, people can begin to make withdrawals from 401(k)s, traditional IRAs and similar retirement savings accounts, without an additional tax penalty of 10 percent. (Withdrawals are still taxed as income in any case.) Of course, just because one can begin to make withdrawals at this age does not mean one necessarily should.

At age 60, if one's spouse has died, then one can begin to collect a Social Security survivor benefit. This is also true if an ex-spouse has died, if the marriage lasted at least 10 years and the survivor did not remarry.

Upon reaching age 62, people can take the option of early Social Security retirement benefits. Keep in mind that starting one's benefits early results in lower payments, and it is usually better to wait a few years to receive a larger benefit. If one is eligible for a pension, these benefits also often kick in at this age.

At age 65, one becomes eligible for Medicare. There is a seven-month window around one's 65th birthday to sign up for Medicare benefits and avoid a surcharge.

Age 66, for most baby boomers, is full retirement age for the purposes of Social Security retirement benefits. Additionally, at this age, someone who chose early benefits can now suspend benefits in order to build up delayed retirement credits.

Upon reaching age 70, there is no further advantage to delaying taking Social Security retirement benefits. People who wait until this age to begin receiving benefits maximize their monthly payments.

At age 70 1/2, required minimum distributions begin for 401(k)s and IRAs. A certain amount must be withdrawn from these accounts each year, based on the total value of all such accounts.

By paying close attention to these milestones, one can complete a more precise budget, an important part of retirement planning.

New York Contact:
Maria M. Brill
Littman Krooks LLP
(914) 684-2100
[email protected]

New York City Office
655 Third Avenue, 20th Floor
New York, New York 10017
(212) 490-2020 Phone

Westchester Office
399 Knollwood Road
White Plains, New York 10603
(914) 684-2100 Phone

Dutchess Office
300 Westage Business Center Drive, Suite 400
Fishkill, NY 12524
(845) 896-1106 Phone

  • NYC Restores Assistance For Seniors and People with Disabilities
    The New York City Department of Finance has agreed to a settlement that will reinstate or recalculate the previously frozen rent rates of widowed seniors who had been surprised by steep rent increases after the death of their spouses. A 2014 rule change by the New York City Department of Finance instituted a new requirement […]
  • Family History May Help Seniors
    Seniors and their loved ones can benefit from knowing the family’s health history. Genetics plays a role in a wide range of diseases, and being aware of the ailments that previous generations suffered from can help inform the preventative steps that should be taken to safeguard seniors’ health, as well as the care they may […]
  • Cold Weather Safety for Seniors
    Our guest blogger this week is Louis Giampa, President, Right At Home In House Care & Assistance (Westchester) When winter’s beauty turns more beast with arctic winds, mounds of snow and bone-chilling temperatures, the season’s harsh side can prove especially dangerous for senior adults. Even older snowbirds escaping to warmer climates still can encounter dips […]

See other news sources publishing this article. BETA | Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required