Never mind what our parents taught us
when we were young about lying….
Retirement Wealth Advisors www.ASKsteveholland.com
727.724.3334
WEALTH MANAGEMENT
2637 McCormick Drive #101
Clearwater, FL 33759
* This material has been prepared for informational and
educational purposes only.
It is not intended to provide, and should not be relied upon for,
accounting, legal or tax advice. Please consult with a professional
specializing in these areas regarding the applicability of this
information to your situation.
Investment Advisory Services offered through Mutual Trust Asset
Management
JULY/AUGUST 2017 | TAMPA BAY MAGAZINE 67
Adults do it all the time when it
comes to their age. Celebrities do it
shamelessly, as do people on online
dating sites!
The reality is, when the candles on the
birthday cake hit a certain number, we’re
tempted to stop counting, because all it does
is remind us we’re not getting any younger.
We’re going to show you exactly which
birthdays you need to remember and why
these dates are important and what choices
you will have.
In your 50s, 60s and your 70s, some pretty
major decisions - about your retirement, your
money and your financial future that will ripple
throughout the remainder of your lifetime, your
children’s lives – even your grandchildren.
From a financial perspective, the only way to
have your cake and eat it too, is to be aware
that these age milestones exist and you need
to plan for them.
You need to plan for how you’re going to
handle the decisions you’re required to make
when you hit ages 50, 59 ½, 62, 65, maybe 66
or 67 …… and 70 ½, for example.
The first important age is: 50
If you have a 401(k), 403(b) or 457 retirement
plan, you can put away an extra $6,000 on top
of the typical $18,000 annual contribution
limit. This is commonly referred to as the
“catch up” provision. Designed to help you
“catch up” on your retirement savings. For
some – a true blessing.
Next is age: 55
If you have assets in an employer-sponsored
qualified retirement plan (such as a 401k) and
you leave or are fired from your job during
the calendar year that you turn age 55, you
become eligible to take a distribution from
that plan. This allows you to take money out
of it, without paying the ten percent federal
tax penalty that normally would apply to a
withdrawal at that age. You will still have
to pay ordinary income taxes on that money.
Basically this is a hardship exemption for
people who become unemployed in their
mid-50s.
59 ½: (our next important
financial age)
You can start taking money from your
qualified retirement plan or traditional IRA
without a 10% IRS penalty. In the case of
your traditional IRAs and 401(k)s, you (of
course) will be obligated to pay income taxes
on those distributions
Next………age 60:
Since Social Security is a federal benefit that
you have earned over your working life, you
are the only one who can make the decision
about when and how to take your benefits.
Age 60 is important because that is when a
widow or widower can elect to begin receiving
Social Security benefits, But at a reduced
rate. It’s also important to note that if a person
receives a widow’s or widower’s benefits,
and they also will qualify for their own
Social Security benefit that’s more than their
survivors benefit, he or she can switch to their
own retirement benefit as early as age 62 or as
late as age 70. There are lots of complexities
with Social Security rules, so be sure to talk
with a financial professional who has a strong
grasp of the program and its many different
contingencies to help you find information
that is relevant to your situation.
Age 62: You are able to take “early” Social
Security Benefits. But just because a person
is entitled to receive Social Security payments
starting at 62 doesn’t mean they should do so,
at least right away. Simply because this is a
reduced age benefit. You will lose about 25%
of your full retirement benefit.
Age 65-67: Depending on your birth date,
your Full Retirement Age or FRA, is when you
receive your full retirement benefits.
70 ½ : This is the age that you are FORCED
to take your Required Minimum Distribution,
also known as RMD. Basically the IRS is
saying, you have enjoyed enough tax deferment
in your retirement plan, it’s time to spend (and
yes, pay taxes!) on your retirement wealth.
By the way…….Happy (next) Birthday!
/www.ASKsteveholland.com