Don’t Miss These Important Retirement Planning Dates
Filed under: Retirement
Much of your retirement planning decisions will revolve around saving a certain amount of money. But there are many more decisions that you will make, and most of them have a deadline attached! Remember to anticipate these dates, and consult with us ahead of time so that you can make the best decisions for your situation.
December 31. Each year, you must make your retirement plan contributions by December 31 in order to claim the maximum tax credit in the following spring. Try to reach the maximum allowable contribution each year, and you will save more on your taxes while better preparing yourself for retirement.
April 15. By April 15 of each year, you must file your income taxes (or ask the IRS for an extension). This is also the deadline for making IRA contributions that you want to count as deductions on your tax return.
Your 62nd birthday. This is the first date at which you can claim your Social Security benefits. However, your payments will be permanently reduced by about 25 percent if you claim them this early. In some cases it makes sense to file for Social Security before your full retirement age (65 to 67, depending upon when you were born). This is a decision to make carefully, since it will impact the rest of your retirement years.
Your 65th birthday. You’re eligible for Medicare when you turn 65, but you can actually start the application process three months prior to this date. The enrollment period extends for an additional four months afterward. Be careful not to miss this important window of opportunity, because you can be charged permanently higher Medicare premiums if you sign up after the deadline.
October 15 to December 7. Once you’re receiving Medicare benefits, you should pay attention to this Open Enrollment period every year. During this time, you can make changes to your plan, or add a supplemental plan. Taking the time to evaluate the previous year’s health care spending, and comparing your options, can save you a chunk of change in the coming year.
Your first required minimum distribution. Once you reach age 59 ½, you can begin taking distributions from your retirement plan. But many people wait as long as possible, so that their accounts can continue to grow. Keep in mind that you must begin taking required minimum distributions in the year that you turn 70 ½, though. You will have to take this RMD before April 1 of that year. Keep in mind that you will have to take your next RMD before December 31, possibly triggering additional income taxes for that year. Before scheduling your required minimum distributions, consult with us so that together we can decide upon the most beneficial time to do so.
This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
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