Planning for retirement isn’t just about saving—it’s about knowing the key ages when you can contribute more, access funds, or maximize your benefits. Here’s a comprehensive guide covering 401(k), IRA, Solo 401(k), SEP IRA, and Social Security key milestones. Don’t miss these key ages!
⚡ Age 50: Standard Catch-Up Contributions
At 50, you can start making extra contributions to boost your retirement savings:
- 401(k), 403(b), and most 457 plans: Extra $7,500 per year
- Traditional and Roth IRAs: Extra $1,000 per year
- SIMPLE IRAs: Extra $3,500 per year
- Solo 401(k): Eligible for the same $7,500 catch-up as regular 401(k) plans
- SEP IRA: No catch-up contributions allowed
This is a great opportunity to increase your retirement savings if you’re behind.
🎯 Age 55: Rule of 55 (Not for IRAs or Solo 401(k))
If you leave your job in or after the year you turn 55, you can withdraw from your 401(k) or 403(b) without a 10% penalty.
🚨 Not available for IRAs, Solo 401(k), or SEP IRA.
🎉 Age 59½: Penalty-Free Withdrawals Begin
At 59½, you can withdraw from 401(k), IRA, Solo 401(k), and SEP IRA without the 10% early withdrawal penalty. Regular income taxes still apply.
This is the first age when you can tap into your retirement accounts without extra costs.
💰 Age 62: Earliest Social Security Eligibility
You can start claiming Social Security at 62, but your benefits will be reduced compared to waiting until full retirement age (67).
If you can afford to wait, you’ll receive larger monthly payments.
🔝 Ages 60-63: Super Catch-Up Contributions (Not for Solo 401(k) or SEP IRA)
Starting in 2025, those aged 60 to 63 can contribute the greater of $10,000 or 150% of the regular catch-up to their 401(k) or 403(b).
🚨 Solo 401(k) and SEP IRA are NOT eligible for this super catch-up.
⛑️ Age 65: Medicare Enrollment
Your initial Medicare enrollment period starts 3 months before and ends 3 months after your 65th birthday.
Missing this deadline could mean late penalties—so don’t delay!
⌛ Age 67: Full Retirement Age for Social Security
If you were born in 1960 or later, 67 is when you can claim 100% of your Social Security benefits, which is 30% more than if you claimed at 62.
Waiting even longer (until 70) increases your monthly check.
🚀 Age 70: Maximize Your Social Security Benefit
By 70, your Social Security payments reach their highest possible amount—about 77% more than if you claimed at 62 and 24% more than if you claimed at 67. There’s no advantage to delaying beyond 70, so claim it!
📉 Age 73: Required Minimum Distributions (RMDs) Begin
- Traditional 401(k), IRA, Solo 401(k), and SEP IRA: Must start withdrawing minimum amounts each year.
- Roth IRA: No RMDs for the account owner.
- Roth 401(k): RMDs required unless rolled into a Roth IRA.
The penalty for missing an RMD is 25% of the required amount, so make sure to take it on time!
Solo 401(k) & SEP IRA: Key Age-Based Rules
- No Rule of 55 withdrawals for Solo 401(k) or SEP IRA.
- No Super Catch-Up (60-63) for Solo 401(k) or SEP IRA.
- Solo 401(k) follows standard 401(k) rules for contributions, catch-up, and RMDs.
- SEP IRA does not allow catch-up contributions.
Plan Smart, Retire Confident
Optimize contributions, avoid penalties, and make the most of your retirement funds. Don’t let them slip!