There are many important birthdays when it comes to retirement planning. So, as you approach your retirement, it\u2019s crucial to have a few of these in mind as key milestones. Here are 4 important birthdays to make note of as you set up your financial future:<\/p>\n
When you reach age 50, you can contribute more to your retirement accounts than you were able to when you were younger.[1]<\/sup> In 2023, 401(k) contributors who are age 50 and up can contribute $30,000 to their account ($7,500 over the normal limit for contributors 49 years old and younger).[1]<\/sup> IRA holders can contribute $7,500 a year to their accounts.[1]<\/sup><\/p>\n Most retirement accounts will allow you to take penalty-free withdrawals when you reach 59 \u00bd years old.[1]<\/sup> If you try to withdraw from an account before then, you will likely impose at least a 10% early withdrawal tax in addition to any other tax requirements the withdrawal may incur.[2]<\/sup> There are some accounts that will allow you to withdraw some of your money without a penalty before you are 59 \u00bd, and you can apply for hardship withdrawal to get some of your money without a penalty before you are 59 \u00bd.[3][4]<\/sup> But, in most cases, 59 \u00bd is the age when you can start to withdraw from your accounts without penalty.[1]<\/sup><\/p>\n Deciding when to claim Social Security is a complicated topic, but the earliest you can claim is at 62 years old.[1]<\/sup> Because you are not considered to be at \u201cfull retirement age\u201d at 62, you won\u2019t receive the full value of a Social Security claim, and your payouts for the rest of your life will be reduced.[1]<\/sup> But you can begin to claim at 62 if that fits into your financial plan.<\/p>\n You will be able to enroll in Medicare starting 3 months before you turn 65.[1]<\/sup> You will have 7 months total to decide where to enroll: 3 months before you turn 65, the month of your birthday, and 3 months after your birthday.[1]<\/sup><\/p>\n Retirement has many moving parts and many important dates that should factor into a full pre-retirement timeline. If you realize you don\u2019t have a comprehensive pre-retirement timeline planned out, Schedule a call to reach out to one of our professionals today at HD Money for a complimentary review of your finances.<\/p>\n <\/p>\n There are many important birthdays when it comes to retirement planning. So, as you approach your retirement, it\u2019s crucial to have a few of these in mind as key milestones. Here are 4 important birthdays to make note of as you set up your financial future: Catch-Up Contributions Begin at Age 50 When you reach age 50, you can contribute more to your retirement accounts than you were able to when you were younger.[1] In […]<\/p>\n","protected":false},"author":8,"featured_media":42457,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[118,124],"tags":[],"class_list":["post-42456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-retirement-planning"],"acf":[],"_links":{"self":[{"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=\/wp\/v2\/posts\/42456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42456"}],"version-history":[{"count":0,"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=\/wp\/v2\/posts\/42456\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=\/wp\/v2\/media\/42457"}],"wp:attachment":[{"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hdmoneyinc.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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\n[1] https:\/\/money.usnews.com\/money\/retirement\/aging\/articles\/10-important-ages-for-retirement-planning<\/a>
\n[2] https:\/\/www.investopedia.com\/terms\/w\/withdrawal-penalty.asp#:~:text=Early%20withdrawals%20from%20a%20401,at%20the%20time%20of%20withdrawal<\/a>.
\n[3] https:\/\/www.irs.gov\/retirement-plans\/hardships-early-withdrawals-and-loans<\/a>
\n[4] https:\/\/www.investopedia.com\/ask\/answers\/082515\/how-do-you-calculate-penalties-ira-or-roth-ira-early-withdrawal.asp#:~:text=The%20early%20withdrawal%20penalty%20for%20a%20traditional%20or%20Roth%20individual,income%20tax%20and%20the%20penalty<\/a>.<\/div>\n","protected":false},"excerpt":{"rendered":"