A Year to Remember
Life is full of milestones. Some of them come with special opportunities, others with added responsibilities.
There’s a good chance you’ve got an important birthday coming up, especially if you’re age 50 or older. Take a look at the ages below and see which might apply to you sometime soon if not already:
- The year you are born: you can officially be named a beneficiary on 529 plan accounts and owner on UTMA/UGMA custodial accounts
- Age 18: the age of majority in most states, including Missouri and Illinois
- Age 21: custodial account agreements officially terminate in Missouri and Illinois
- Age 26: adult children may lose coverage under their parents’ health insurance under the Affordable Care Act
- Age 50: you can begin making extra, catch-up contributions to IRAs, 401(k)s, 403(b)s, and similar retirement accounts
- Age 50: public-safety workers who qualify can withdraw workplace retirement funds without penalty when they leave their jobs (income taxes still apply)
- Age 55: all employees can access workplace retirement funds penalty-free when they leave their jobs (income taxes still apply)
- Age 59½: you can withdraw from retirement accounts (IRA, 401(k), etc.) without penalty (income taxes still apply)
- Age 59½: your employer may allow you to make in-service withdrawals from your workplace retirement plan
- Age 60: widows/widowers become eligible for Social Security survivor benefits, at a reduced rate
- Age 62: you can begin receiving traditional Social Security retirement benefits if you wish, at a reduced rate based on your full retirement age (FRA)
- Age 63: your Medicare Part B and Part D premiums at age 65 will be based on what you earn this year (the two-year lag applies every year from now on)
- Age 64 and 9 months: the Initial Enrollment Period for Medicare begins
- Age 65: you become eligible for Medicare
- Age 65: you can begin making non-medical withdrawals from your health savings account (HSA) without penalty
- Age 66: your Social Security Full Retirement Age if you were born between 1943-54
- Age 66 and 2 months: Social Security Full Retirement Age if you were born in 1955
- Age 66 and 4 months: Social Security Full Retirement Age if you were born in 1956
- Age 66 and 6 months: Social Security Full Retirement Age if you were born in 1957
- Age 66 and 8 months: Social Security Full Retirement Age if you were born in 1958
- Age 66 and 10 months: Social Security Full Retirement Age if you were born in 1959
- Age 67: Social Security Full Retirement Age if you were born in 1960 or later
- Age 70: you qualify for your maximum Social Security retirement benefit
- Age 70½: you become eligible for make a Qualified Charitable Distribution (QCD) from a traditional IRA
- Age 72: Required Minimum Distributions (RMDs) begin
I hope this is a handy reference for you, but please take the time to do some additional research before making big decisions based on these dates. They are subject to change in the future, and they might not apply to your specific situation.
Happy Birthday!
Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted.
Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax issues, these matters should be discussed with the appropriate professional.