When it comes to retirement income planning, there are certain decisions to make at certain ages that can impact your retirement income and taxes you pay. Let’s highlight the major milestones that need to be considered.
1) Age 50:
o You can make catch-up contributions to retirement plans such 401(k)s, IRAs, and Roth IRAs.
o If you are age 50-59, the 2025 401(k) and 403(b) catch-up contribution limit is $7,500.
o The 2025 IRA and Roth IRA catch-up contribution limit is $1,000.
2) Age 55:
o You may be able to make penalty-free withdrawals from qualified plans (401(k)s, 403(b)s) if you left your employer in the year you turn 55 or older. The key here is that withdrawals must be from that same plan/account.
o The 2025 Health Savings Account catch-up contribution limit for those over age 55 remains at $1,000.
3) Age 59.5:
o Penalty-free withdrawals from IRAs and qualified retirement plans are allowed at this age.
4) Age 60:
o A widow or widower can receive social security survivor benefits.
o For those age 60+, the 2025 catch up contribution limit to 401(k)s and 403(b)s is increased to $11,250.
5) Age 62:
o You may start taking reduced monthly social security benefits.
6) Age 65:
o Medicare starts . Apply for Medicare within three months on either side of the month you turn 65. Special enrollment periods can apply.
7) Age 66/67:
o Full social security benefits are available depending on your birth year.
o If you are born before 1960, your social security full retirement age is before age 67.
o If you are born in 1960 or later, your social security full retirement age is age 67.
8) Age 70:
o Latest year you can delay social security benefits until. Your benefit amount will not increase any more, outside of the inflation adjustment, past this age.
9) Age 73:
o Given current tax law, you must begin taking required minimum distributions (RMDs) from retirement accounts such as IRAs, 401(k)s, and 403(b)s.
o Remember required minimum distributions DO NOT apply to Roth IRAs and designated Roth accounts such as Roth 401(k)s and Roth 403(b)s.
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