Benefit From Your Birthdays
The road to and through retirement is dotted
with time-sensitive financial planning milestones
vSubmitted by First Dakota National Bank
Not all birthdays are about a driver’s license, getting to vote or
toasting with a glass of wine. Some are important to your comfort
in retirement, too. No matter who you are, the years leading up to
and during retirement contain a number of key financial planning
opportunities worth capitalizing on. You and your spouse may hit
these dates at different times, so be sure to coordinate before making
any decisions.
50 This birthday brings catch-up provision eligibility in your IRA
and certain employer-sponsored plans. Annual traditional or Roth IRA
contribution limits increase from $5,500 to $6,500 for 2018. 401(k) and
403(b) salary deferral limits increase from $18,500 to $24,500. Plus,
SIMPLE IRA participants can defer an additional $3,000 of salary.
55now available to you. Health Savings Account (HSA)from 401(k)
Penalty-free, separation-from-service withdrawals
s are
participants
are also allowed a “catch-up” contribution: For single individuals,
annual contribution limits increase from $3,450 to $4,450. For families,
the limit increases from $6,900 to $7,900.
65 Medicare eligibility begins. Those nottocollecting Social Security
should enroll in Part A three months prior their 65th birthday to
avoid a gap in health insurance coverage. Unless you’re covered by an
employer-sponsored health plan, enroll in Medicare Part B to avoid
future penalties.
66-67 Full retirement age full Social Security (depending on
for
birth year) provides eligibility for
retire¬ment benefits. Social
Security recommends applying for benefits three months prior to the
month you would like them to start.
70wait any longer to receive them. are provided at this age.
Maximum Social Security benefits
Don’t
59 1/210% tax penaltyfromnow possible. Additionally, without 70 1/2 The year you turn 70½ is referred to as your “first
Withdrawals
most retirement accounts
an additional
are
those
distribution year” and required minimum distributions (RMDs) from
who are still working and looking to diversify by rolling funds from
their qualified plan to an IRA may now be able to do so.
60 Those who have lost assumingare eligible to collect Socialand the
a spouse
Security survivor’s benefits,
the deceased was eligible
survivor did not remarry.
62 Socialyour advisor to bestbegins, buthousehold benefits.
Security eligibility
with reduced benefits.
Confer with
maximize
qualified accounts must begin. The IRS allows the first RMD to be
postponed until April 1 of the year fol¬lowing the “first distribution
year”; however, subsequent RMDs are due by year-end of each year.
Kathy Greeneway is a Certified Financial Planner® with Raymond James Financial Services, Inc.
located at First Dakota National Bank, 225 Cedar St., Yankton, SD. Securities are offered through
Raymond James Financial Services, Inc., (Member FINRA/SIPC), and are not insured by the FDIC,
any other government agency or any other bank insurance, are not deposits or obligations of the
bank, not guaranteed by First Dakota National Bank, and are subject to risks, including the possible
loss of principal. First Dakota National Bank and First Dakota Brokerage Services are independent of
Raymond James Financial Services. n
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