A large part of your retirement planning will revolve around mitigation of fees and taxes that could potentially be incurred in the future. One way of doing this is staying aware of your upcoming birthdays that are of significance to the retirement process. Knowing these three ages and what they mean for your retirement can be crucial to saving yourself from unnecessary costs during your golden years.
Owners of certain qualified retirement plans can begin making additional deposits once they turn 50 beyond the pre-50 maximum yearly amount of $6,000. Once you reach 50, that number bumps up to $7,000. Those participating in Simple IRA or Simple 401(k) plans can deposit up to $17,000 per year after the age of 50. Those 50 and older can also contribute another $6,500 per year to their 401(k), 403(b), most 457 plans, and a government-authorized Thrift Savings Plan for a total of $27,000. 
When you reach age 59½, you then become eligible to withdraw funds from your IRAs and old 401(k)s without incurring any penalty fees. If you are currently working where one of your 401(k)s is held, when you turn 59½, the rules may differ so verify with the administrator of your 401(k) before pulling any funds as some allow “in-service” distributions at 59½ while others do not. 
At the age of 72, investors must begin taking Required Minimum Distributions (RMDs) from their qualified retirement accounts such as 401(k)s, Profit Sharing Plans, IRAs, 403(b)s, Money Purchase Pensions, SEP IRAs, and Simple IRAs. The RMD for each qualified account is the minimum amount that must be withdrawn from the account that calendar year, based on the account value from the last day of the year before (Dec. 31st). You can alwayswithdraw more than your RMD but taking less will cost you as penalties are based on the value that should have been pulled will be applied. 
Mitigating future taxes and fees by being aware of upcoming milestones is just one small part of a healthy retirement plan that protects your assets from unnecessary costs in the future. To schedule a complimentary financial review with Moore’s Wealth Management, click here or call our office at 770-535-5000, where a staff-member is awaiting your call Monday through Friday, 9AM to 5PM.
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
Advisory Services Network, LLC does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state laws are complex and constantly changing. You should always consult your own legal or tax professional for information concerning your individual situation.