Financial advice from St. John native and Pratt businesswoman Amanda Meiklejohn.
It’s my birthday month! When planning for retirement, certain birthdays could mean important milestones.
Let’s take a look at some of those important benchmarks to help plan and manage your post-career finances.
Age 50: Higher Contribution limits. When you turn 50, you are able to make “Catch-up”
provisions in your 401K and IRA Accounts. In 2019 those provisions will be $6,000.00 for 401K and $1,000.00 for an IRA.
Age 55: If retirement during the calendar year you turn 55 is in your plans, you may begin withdrawals from an employer’s 401K without penalty.
Age 59.5: At this age you are eligible to withdraw money out of your 401K or IRA penalty—free subject to income tax. (Except for Roth IRA Withdrawals because contributions are made with after-tax dollars)
Age 62: Social Security eligibility begins. The downside to taking Social Security at this age means it can be reduced by 30%**, or if additional income is earned after benefits are issued then payments can be reduced or suspended depending on the income amount.
Age 65: This is typically the first age that comes to mind when the word “retirement” comes up.
It’s also the age you can sign up for Medicare. Make sure to sign up on time to avoid raised premiums.
Age 66: An age important to the “Baby Boomers”, this is the age Social Security deems your full retirement age. Full Social Security payment can start, and if you do decide to take a part-time job the benefits will not be impacted.
Age 70: Your Social Security Benefit will increase each year up until age 70**.
Age 70.5: You must start taking distributions from a 401K (if still employed) and IRAs and tax
breaks for making contributions ceases.
So mark your calendar, it’s a good reminder to watch these dates for tax rules and benefits that could impact you. I hope you all enjoy each and every upcoming birthday to come.
Legacy Investment Services located at Legacy Bank 223 S. Main St., Pratt, Kan. For additional information, please visit www.legacy.bank/legacy-investment-services/, on Facebook: Legacy Investment Services, call Amanda Meiklejohn, Financial Advisor at 620-672-4850 or stop by to set up an appointment to discuss your Investment needs.
Securities and insurance products are offered through Cetera Investment Services LLC, member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered.