Save the Date

It has been said that wisdom comes with age. However, as a counterpoint, someone once said, “Sometimes age just shows up all by itself.”1

Either way, one thing that does come with age is eligibility for retirement benefits. There are several key retirement milestones tied to specific birthdays or ages. Take this quiz to see how “wise” you are when it comes to these important birthdays.

Match the following ages to their respective retirement milestones:

59½; 62; 65; 66; 70½

____ 1. You become eligible for full Social Security benefits at this age, assuming you were born between 1943 and 1954.

____ 2. At this age you must start taking withdrawals from most employer-sponsored retirement plans and traditional IRAs (the first distribution must be taken no later than April 1 of the year after you reach this age). Required minimum distributions are calculated based on life expectancy tables set by the IRS. The penalty for failing to take a required distribution is 50% of the amount that should have been withdrawn.

____ 3. You are eligible for Medicare coverage at this age.

____ 4. You can take penalty-free withdrawals from employer-sponsored retirement plans, IRAs, and annuities. Before this age, withdrawals are subject to a 10% federal income tax penalty. Distributions from tax-deferred retirement plans are subject to ordinary income taxes (with annuities, only earnings are taxed).

____ 5. You are eligible to start collecting reduced Social Security benefits. Collecting benefits early may permanently reduce your benefit by up to 30%.

1) ThinkExist.com, 2010 (quote is by Tom Wilson)

Answers: 1. 66; 2. 70½; 3. 65; 4. 59½; 5. 62

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. © 2010 Emerald.
Whitlock Financial Services, Inc. an Independent Firm
6 Davis Keats Drive • Greenville, SC • 29607
Phone: (864)-234-6580 • Fax: (864)-234-6588
www.whitlockfinancial.com • Mickey.Whitlock@raymondjames.com Brent.Whitlock@raymondjames.com

Whitlock Financial Services is an independent firm.  Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.

This site is published for residents of the United States only.  Raymond James' Financial Advisors may only conduct business with residents of the states for which they are properly registered.  Therefore, a response to a request for information may be delayed.  Please note that not all of the investments and services mentioned are available in every state.  Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not adressed on this site.  Contact your local Raymond James office for information and availability.

Information and interactive calculators are made available to you as self-help tools for your independent use.  The accuracy of this calculator and its applicability to your circumstances is not guaranteed.  You should obtain personal advice from qualified professionals.  The information provided is not specific investment advice, a guarantee of performance, or a recommendation.  Rates of return will vary over time, particularly for long-term investments.  Investments offering the potential for higher rates of return also involve a higher degree of risk.  Actual results will vary.