Age matters when you are managing your 401K. There are several important ages that you need to be aware of. The 401K brothers take us through the important dates of our plans and discuss catch-ups, social security and distributions.
Show Notes:
- :30 - 21 years of age is what most plans to put as the entry age.
- 1:22 - Age of 50 is important because at 50 you are able to do the catch- up provision in your 401K plan. This means you can start contributing more money to your plan.
- 2:42 - 66 and 67 are important because this is typically the age of most folks who hasn't´´ retired yet hit the full social security retirement age.
- 3:57 - Sit down and do an analysis to see if you are really getting the best benefit of social security. If you wait until this age, you will get the full benefit without tax implications.
- 4:54 - 59 ½ is the first age you can take from any retirement account without paying the 10% penalty.
- 5:57 - 70 ½ is the age you have to start taking out of the retirement plans. It is the required minimum distribution amount. If you are still working and you aren't a 5% owner of a plan, you are not required to take it at that time.
- 7:18 - There is a lot of information to understand to do the distribution of those plans.
- 7:56 - No matter what age you are at, check your account.
3 Key Points:
- There are many important ages to know when managing your 401k account.
- While the age you enter into a plan can be around 21 years, there are many other important ages as you progress through life.
- It is important to know these ages so you can plan your retirement distributions.
Tweetable Quotes:
- “No matter what age you are at, check your account.” –Bill.
- “Look at all the little habits of how you save and spend your money. It will let you know how long your money will last in retirement” –Bill.
- “The year you turn 50 you are able to do the catch-up provision in your 401K plan. ” –Bill.
Resources Mentioned:
