Retirement planning milestones
Age is just a number, except when it comes to retirement planning. As you celebrate the birthdays below, be sure to consider the important financial milestones that come along with them. After all, what gift could be better than a financially secure future?
Now’s the time to start making catch-up contributions of up to $1,000 annually to your Individual Retirement Account (IRA), or $6,500 annually to your qualified employer-sponsored plan.
At age 55, you may be eligible to start receiving penalty-free distributions from a qualified retirement plan if you’ve stopped working. Learn more on the IRS website.
You’re now eligible for penalty-free distributions from your IRA, 457(b), pension plan or qualified employer-sponsored plan!
At age 62, you can now claim Social Security benefits, but think carefully before you do! Collecting your benefits early may reduce them by as much as 30%. Waiting until your full retirement age will ensure you collect your full benefits.
You’re eligible for Medicare! Actually, you’re eligible to sign up three months before your 65th birthday. Be sure to sign up early, as waiting can lead to higher premiums.
You’ll reach full retirement age at some point between ages 66 and 67. Reaching your full retirement age means you qualify to receive full Social Security benefits!
If you haven’t already, file for Social Security benefits! Your Social Security benefits won’t increase after you reach age 70, so there’s no reason to wait until longer!
When you turn age 72, you’ll need to start taking your Required Minimum Distribution (RMD) from your IRA or employer-sponsored plan. You can wait to take your RMD for the first year until April of the second year. However, you must take the RMD for the second and all subsequent years by December 31 of that year. If you still work for your employer, you may be able to delay taking your RMD from their plan. Failure to take your RMD on time can result in a 50% tax penalty to the amount you should have taken.
Are you concerned your current savings may not be enough to last through your future? An annuity from MassMutual Ascend can provide guaranteed income for life or for a specified number of years. Talk with your financial professional to find out if an annuity is right for you!
MassMutual Ascend Life Insurance Company is not an investment adviser, and the information provided here is not investment advice. You should consult your investment professional for advice based on your personal circumstances and financial situation. This information is not intended or written to be used as legal or tax advice. It was written solely to provide general information and support the sale of annuity products. You should seek advice on legal or tax questions based on your particular circumstances from an attorney or tax advisor.