Jan 24, 2019
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.
- :30 - 21 years of age is what most plans to put as the entry
- 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
- While the age you enter into a plan can be around 21 years,
there are many other important ages as you progress through
- It is important to know these ages so you can plan your
- “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. ”