Birthdays Are Important Even When You Grow Old
Birthday celebrations are generally associated with children and young adults, generally in their teen age. However, as you grow old, you can feel a reverse gear in your age and start celebrating some important birthdays of your life. These birthday years are special for a number of reasons for those worried about their retirement planning. If you have planned for your post-retirement life, you can celebrate the following birthdays with a refurbished enthusiasm.
When You Turn 59
You can celebrate your 59th birthday with great joy, as you are just half a year away from the benefits of withdrawing penalty free distributions from your IRA accounts. As per the rule, an individual has to face a tax penalty of 10%, if he or she withdraws the distributions before reaching the age of 59 and half. The same rule applies for any types of qualified retirement plan.
When You Turn 62
Your 62nd birthday is also a reason for celebrations as this is the year when you become eligible for collecting benefits associated with Social Security. It is said that there are three strong pillars for retirement planning – the retirement plans, your personal savings and the Social Security benefits. Thus, you can celebrate this year for accessing one of your sources for retirement funds. However, it is at the arrival of your full retirement age (65 to 67), when you8 can actually start receiving all the Social Security benefits.
When You Turn 65
The age of 65 can bring you the benefits of Medicare, by making you eligible for these medical expenses. Medicare allows two types of benefits:
- Medicare Part A is for Hospital Insurance benefits, and individuals eligible for Social Security automatically qualify or the.
- Medicare Part B Medical Insurance benefits have premium associated with them on monthly basis and they are voluntary in nature.
It is advised to apply for these benefits at least 3 months before turning 65, in order to access them without any delays.
When Your Turn 70
At the age of 70 and half, you can enjoy the benefits of required minimum distributions from your IRA. In case, you don’t withdraw this minimum account, you can face 50% tax penalty. The minimum amount is fixed according to the life expectancy calculations of the individual.
Thus, once you head towards your retirement age, you can eagerly wait for these significant years of your life, when you will realize that you have a good financial standing in this world.
