Mark Your Calendar

Upon announcing his retirement from the U.S. Senate, former astronaut John Glenn remarked that, “There is still no cure for the common birthday.”¹

When we’re young, age tends to define us. As adults, we may try to ignore our ages or keep them secret. But once we approach the end of our working years, birthdays take on a renewed importance. By failing to recognize some key birthdays, you could miss out on important benefits or run the risk of incurring tax penalties.

See if you can match these ages to the milestones they signify:

A) 59½ B) 62 C) 65 D) 66 E) 70½

___ 1. At this age you are eligible to enroll in Medicare.

___ 2. At this age you may be able to withdraw money from a tax-deferred retirement program without incurring a 10% federal income tax penalty.

___ 3. At this age you are eligible to begin collecting reduced Social Security benefits.

___ 4. This is the age you must use to calculate your required beginning date for required minimum withdrawals from most tax-deferred retirement plans [such as a 401(k) plan or a traditional IRA].

___ 5. At this age you become eligible for full Social Security benefits (assuming you were born between 1943 and 1954).

1) BrainyQuote.com

Answers

1. C) 65
2. A) 59½
3. B) 62
4. E) 70½
5. D) 66

*Note: Congress temporarily suspended RMDs for the 2009 tax year.

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. © 2009 Emerald.