Important Birthdays Over 50
Most folks don’t necessarily announce their birthdays as they get older. However, there are some milestone birthdays in the financial world that may be beneficial.
Let’s start with age 50. At age 50, employees in certain qualified retirement plans like 401k, 403b and 457 plans can contribute an additional $8000 in 2026. For those that have Simple IRA they can contribute an additional $4000 for 2026. For Traditional and Roth IRA’s those over 50 can contribute an additional $1100. At 59 ½, that half year older unlocks your access to withdrawals from qualified retirement accounts like IRA’s and 401k’s. 59 ½ allows you to take distributions from these accounts without a 10% penalty since you are now to be considered of retirement age.
62 is the first time you are eligible to draw Social Security retirement benefits. However, if a person continues to work, those benefits could be reduced. If one makes over $24,480 the Social Security Administration will deduct $1 in benefits for each $2 earned above this limit. Once a person reaches full retirement age this reduction goes away.
At age 65 individuals can qualify for Medicare. The Social Security Administration suggests applying 3 months before reaching age 65. If you are already receiving Social Security Benefits due to a disability you will automatically be enrolled in Medicare Part A and Part B without an additional application.
Between ages 65 and 67 most become eligible to receive 100% of their social security benefit. Just about everyone now born after 1960 becomes eligible to receive benefits at age 67. There are extra benefits for each year you wait until age 70.
For those that have attained age 73 they must start taking what’s called Required Minimum distributions from your traditional IRA’s and qualified retirement accounts. This is a way for the Federal Government to get a portion of your taxes out of you. IRA distributions are a must at this age, but distributions from qualified retirement accounts can be deferred if you continue to work.
For further information and how these important dates apply to you connect with your trusted professional to further discuss what impact these dates will have on your planning. We would be happy to address these questions and more! Give us a call: 802-453-2378.