Don’t Miss These 7 Important Retirement Deadlines

9:48 pm Retirement Planning

alarm clock e1380577621997 Don’t Miss These 7 Important Retirement DeadlinesRetirement is all about not having to pay attention to deadlines anymore, right?  Wrong!  Here are 7 key retirement deadlines you cannot afford to miss:

When you turn 50 – make those catch-up contributions as soon as you turn 50; you can now contribute an additional $5,000 to your 401(k) and another $1,000 to your IRA.

When you turn 55 – If you lose your job or have to stop working when you are 55, the IRS lets you start taking withdrawals from your 401(k) without penalty.

When you turn 59 ½ — this is when you can start making withdrawals from your IRA or 401(k) without incurring a penalty.

3 months before you turn 62 – this is the earliest date that you are allowed to apply for Social Security benefits.  However, if you can delay taking benefits, then you could enjoy a much bigger benefit:  at age 62, you only get 70% of the benefit you would get if you waited until age 67.

3 months before you turn 65 – this is when you need to sign up for Medicare.  If you miss the deadline, you will have to wait until the general enrollment period, which is Jan. 1-March 31 every year.  And then coverage doesn’t kick in until July, plus you’ll have to pay a 10% surcharge for waiting.  If you will still be working at 65 and on your employer’s health plan, you will not need to sign up or suffer the 10% penalty – Medicare lets you wait until you stop working, but you have to sign up within eight months of quitting.

When you turn 70 – this is the age when you will get the maximum Social Security benefit, so if you have been able to wait, apply now.

When you turn 70 ½ — you must now start taking the required minimum distributions from your 401(k) and traditional IRAs or face a stiff penalty for not doing so.

If you are behind on your retirement planning, then set a deadline to contact our Orange County law firm about putting a retirement plan together.

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