Save the DateIt has been said that wisdom comes with age. However, as a counterpoint, someone once said, “Sometimes age just shows up all by itself.”1Either way, one thing that does come with age is eligibility for retirement benefits. There are several key retirement milestones tied to specific birthdays or ages. Take this quiz to see how “wise” you are when it comes to these important birthdays. 
Match the following ages to their respective retirement milestones: 59½; 62; 65; 66; 70½ ____ 1. You become eligible for full Social Security benefits at this age, assuming you were born between 1943 and 1954. ____ 2. At this age you must start taking withdrawals from most employer-sponsored retirement plans and traditional IRAs (the first distribution must be taken no later than April 1 of the year after you reach this age). Required minimum distributions are calculated based on life expectancy tables set by the IRS. The penalty for failing to take a required distribution is 50% of the amount that should have been withdrawn. ____ 3. You are eligible for Medicare coverage at this age. ____ 4. You can take penalty-free withdrawals from employer-sponsored retirement plans, IRAs, and annuities. Before this age, withdrawals are subject to a 10% federal income tax penalty. Distributions from tax-deferred retirement plans are subject to ordinary income taxes (with annuities, only earnings are taxed). ____ 5. You are eligible to start collecting reduced Social Security benefits. Collecting benefits early may permanently reduce your benefit by up to 30%. 1) ThinkExist.com, 2010 (quote is by Tom Wilson) Answers: 1. 66; 2. 70½; 3. 65; 4. 59½; 5. 62 The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald. |
| The Mclane Agency, Inc |
print this page| 14015 Park Dr. Suite 109 and 111 | • | Tomball, TX | • | 77377 |
| Phone: TF 1-888-357-0804 | • | Fax: TF 1-888-326-6292 |
| www.themclaneagency.com |
All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.
Securities licensed associates of The McLane Agency, Inc. are Registered Representatives & Investment Adviser Representatives offering securities and investment advisory services through NATIONAL PLANNING CORP. (NPC), NPC of America in FL & NY, Member FINRA/SIPC, and a Registered Investment Adviser. Registered Representatives of NPC may transact securities business in a particular state only if first registered, excluded or exempted from Broker-Dealer, agent or Investment Adviser Representative requirements. In addition, follow-up conversations or meetings with individuals in a particular state that involve either the effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made absent compliance with state Broker-Dealer, agent or Investment Adviser Representative registration requirements, or an applicable exemption or exclusion. The McLane Agency, Inc. and NPC are separate and unrelated companies.