Important Retirement Milestones

Important Retirement Milestones

June 07, 2024

When people think of milestones in retirement, many may think of the exciting ones like your last day of work, or the first trip you are taking in retirement, or maybe it is moving to be closer to your family. Those are the fun and exciting milestones that occur during retirement. But there are many other milestones to keep in mind during retirement and even before. Below is a list containing some financial milestones that you can achieve while working towards retirement or during retirement. 

  • Age 50 - You can begin making catch-up contributions to IRAs, Roth IRAs or employer sponsored retirement plans (401(k), 403(b), etc). For Roth and Traditional IRAs you can contribute an additional $1,000/year. For employer sponsored retirement plans you can contribute an additional $7,500.
  • Age 55 - You can begin to take penalty-free distributions from your 401(k) plan as long as you are no longer employed by that company.
  • Age 59.5 - You can begin to take penalty-free distributions from your Traditional IRAs and other qualified retirement plans (401(k), 403(b), etc).
  • Age 60 - if you are a widow, you are able to begin to collect partial Social Security benefits of your deceased spouse.
  • Age 62 - You may be eligible to begin to receive a reduced amount of your Social Security benefits. Your spouse may also be eligible to receive a reduced spousal benefit.
  • Age 65 - You can begin to enroll in Medicare. You can also begin to take penalty-free distributions from your Health Savings Account (HSA) for non-medical withdrawals. These withdrawals will still be likely subject to income taxes.
  • Age 66 - Full retirement age for individuals born between 1943 and 1954. For those born between 1955-1959, add two months to age 66 for every year after 1954.
  • Age 67 - Full retirement age for individuals born 1960 or later.
  • Age 70 - Ending age for accruing delayed credits for Social Security.
  • Age 70.5 - Required minimum distributions (RMDs) must begin from Traditional IRAs and certain retirement plans for account holders born before July 1, 1949.
  • Age 72 - RMDs must generally begin from Traditional IRAs and certain retirement plans for account holders born July 1, 1949 – December 31, 1950.
  • Age 73 - RMDs must generally begin from Traditional IRAs and certain retirement plans for account holders born January 1, 1951 – December 31, 1959.
  • Age 75 - RMDs must generally begin from Traditional IRAs and certain retirement plans for account holders born January 1, 1960 or later.

We understand that there are a lot of important milestones to keep track of, which is why we help our clients understand and keep track of this important information. Let us know if you have any questions about these important retirement milestones. We are excited to help you reach your next Harvest Point®.

Sources: Social Security Administration (www.ssa.gov), Internal Revenue Service, and Amundi Asset Management