11/04/2024
Build a retirement timeline
The path to retirement has several milestones and stopping to review your goals at each checkpoint can help ensure your retirement plans stay on track. Your financial professional can discuss this timeline and how to develop a retirement income strategy that will work for you.
Age 50: You can begin making additional “catch up” contributions to your 401(k) or profit sharing plan up to an annual maximum
Age 55: If you separate from service during or after the year you reach age 55, you can take penalty-free distributions from your current employer's retirement plan.
Age 59½: You may take Individual Retirement Account (IRA) withdrawals without a tax penalty. Traditional IRA withdrawals will be taxed as income. Roth IRA distributions will be tax-free if the Roth IRA has been held for at least five years.
Age 62: At this age, you become eligible for Social Security benefits. Remember, your benefits are reduced by a fraction of a percent for each month before your full retirement age which varies depending on your birth year.
Age 65: You become eligible to sign up for Medicare three months before you turn 65 and for those under 65 with certain disabilities.
Age 70: If you delay claiming Social Security benefits, until after your full retirement age, you may be eligible for increased payments. After age 70, however, there is no additional incentive for delaying benefits.
Age 73: At this age, you must start taking your annual required minimum distributions (RMDs) from most tax qualified retirement accounts. Although you may withdraw more than the RMD, you cannot withdraw less. Keep in mind that all withdrawals, including RMDs, may be taxed as ordinary income.1
