PLANNING FOR RETIREMENT
Mark Your Calendar for These Milestones
AGE 50: CHECK ON CATCH-UP CONTRIBUTIONS ■ Catch-up contributions, available to those age 50 and older, are additional contributions above the normal contribution limit to your IRA or employer-sponsored retirement plan. * ■ They are designed to help you decrease any retirement savings shortfall by increasing the amount you’re saving in the years leading up to retirement. ■ Contributions can be made to traditional and Roth IRAs as well as to certain employer- sponsored retirement plans — if you have sufficient earned income. AGE 59 1/2–62: DETERMINE THE BEST TIME TO BEGIN TAKING WITHDRAWALS ■ Regardless of what type of retirement account you have, you can begin taking withdrawals penalty free at 59½. ■ Working after 59½? You will have to follow your employer-sponsored plan’s rules for withdrawal. Your “in-service” payouts might be limited while you are still working. ■ Age 62, according to the IRS website, is the earliest you can begin collecting Social Security benefits unless you are disabled. However, taking benefits at this age triggers a roughly 25%–30% permanent reduction in your benefit and can reduce your spouse’s benefit by approximately 30%–35%. AGE 65: APPLY FOR MEDICARE ■ If you already receive Social Security, you’ll be automatically enrolled in Medicare Parts A and B at age 65. ■ If you are not collecting Social Security benefits yet, you may apply for Medicare. Ideally, you should apply for Medicare three months before the month you turn 65 even if you plan to delay receiving retirement benefits because you are working. Apply online at www.ssa.gov, at your local Social Security office or by calling 800-772-1213. ■ Before age 66 OR 67: You can receive Social Security retirement or survivors’ benefits and work at the same time; however, if you are younger than full retirement age and earn more than certain amounts, your benefits will be reduced. Your benefit reductions are not lost, as your benefit will be increased at your full retirement age to account for benefits withheld due to earlier earnings. Contact the Social Security Administration for additional stipulations.
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Wealth | Investments | Planning Commerce Trust Company
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