Retirement milestones

Video Duration: 2 minutes 48 seconds

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Description of visual information:[USAA Life Insurance Company and USAA Life Insurance Company of New York]End of description

Age, as the saying goes, is more than just a number. That’s especially true when it comes to planning your retirement — as you grow older, taking steps at certain milestones could affect your finances and your retirement plans. Some of these milestones are obligations and some are opportunities. What they all have in common is they can have a big impact on your retirement plans.

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You may be asking yourself: at what ages can I boost my retirement savings, take Social Security benefits, start to take required minimum distributions, or skip the federal tax penalty for withdrawing funds?

We have outlined 8 important milestones during your retirement journey between ages 50 to 73 on a variety of important topics.

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For example, age 50: Catch up on retirement contributions. This is when the IRS lets you contribute more than the standard annual limit for 401(k)s and IRAs.

Age 55: Consider boosting your Health Savings Account. You’re able to start making catch up contributions to your health savings account or HSA, making it a valuable tool as you plan for retirement.

Age 59 and a half: Skip the federal tax penalty on withdrawals. If you have a Roth IRA that’s been open for at least five years, your distributions of earnings are now tax-free. You can also withdraw money from an IRA, 401(k), or 403(b) without penalties or limitations.

Age 62: Take a look at your Social Security benefits. This is when you have your first opportunity to start taking benefits.

Age 65: Enroll in Medicare. Don’t miss your window of opportunity. Otherwise, Medicare part B and prescription drug coverage, part D, may be more expensive.

Ages 66 to 67: This is when you reach full retirement age for Social Security. Determine if it’s a good time to start taking your benefits.

Age 70: File for Social Security if you haven’t.

Age 73 and older: Enjoy the fruits of your labor. If you made pre-tax contributions to a 401(k) during your working years, you’re required to start taking taxable withdrawals at this point.

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Our USAA Retirement Income Specialists can help you make important decisions such as claiming social security, developing an efficient RMD strategy and see how all these key dates fit into your retirement income plan.

Call a USAA Retirement Income Specialist at 800-531-3392.

Description of visual information:[Money not previously taxed is taxed as income when paid. Withdrawals before age 59½ may be subject to a 10% federal tax penalty.

Life insurance and annuities provided by USAA Life Insurance Company, San Antonio, TX and in New York by USAA Life Insurance Company of New York, Highland Falls, NY. All insurance products are subject to state availability, issue limitations and contractual terms and conditions. Each company has sole financial responsibility for its own products.]End of description

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