Did you know there are certain milestone birthdays – or even some birthdays between milestones – where opportunities present themselves to make additional contributions to savings accounts, IRAs and other retirement funds in order to get even more mileage out of our money?

For example, at age 50, the IRS allows people to make “catch up” contributions to retirement savings accounts. That’s good for just about every type of account that falls into the category: 401(k) plans, 403(b), 457(b), traditional IRAs, SIMPLE 401(k)s and SIMPLE IRAs. If there were times in your past that you couldn’t fully contribute or match your employer’s contribution to your savings, this is a great time to do so.

Thinking of retiring around your 55th birthday or beyond? That will allow you to take distributions from your employer-sponsored 401(k) without getting hit with the 10% early withdrawal penalty. Otherwise, that penalty will apply until you reach 59 ½.

Looking at a cake with 62 candles? Good news: you’re now eligible for Social Security benefits if you need them. If you can afford to wait, you’ll get slightly more in your deposit each month, but the amount of your benefit will vary depending on when you were born. For example, if you were born after 1960, when you reach 62, you’ll get 70% of your earned benefits.

If the family and friends gathered around the party are serenading you with the Beatles’ classic “When I’m 64” at your last birthday, take note: You have seven total months to enroll for Medicare, window that opens three months before your 65th birthday. If you’re already receiving Social Security, however, you might want to check and see if you’re already registered. There’s information available for you at Medicare.gov to help clarify.

On your 70th birthday, even if you’ve chosen to defer, you’ll begin receiving Social Security benefits. The good news is, you’ll now receive your maximum benefit. If you’re still working, the benefit will still be distributed, but you’ll start to pay both Social Security and payroll tax on your total earned income.

Within the next six months, by the time you turn 70 ½, it will be required that you begin to receive minimum distributions from your tax-deferred retirements by April 1 following your 70th birthday. There are some exceptions.

If this is confusing or if you’re not sure the best way to get the most of your money as you enjoy retirement, or as you continue working into your golden years, contact me for advice. We can sit down together, discuss your options and your goals and make decisions that will work best for you and your future. You’ve worked hard for your money; now it’s time for your money to work hard for you.

Avoid the common mistakes most women make about money, especially when they are in crisis- divorce, widowed, etc. Schedule a free consultation with me at Calendly.com/contactagrace; or call me at 716-817-6425.

During this time period, you can ‘true up’ your full contribution for 2018, as well as make your 2019 deposit.

Brace yourself for a lot of numbers —I’m sorry! — but that’s what taxes are all about! If you have questions, or this makes your stomach hurt, just call me and I’ll help explain further (716-817-6425).

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.

The limit on annual contributions to an Individual Retirement Arrangement (IRA) which last increased in 2013, is increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50
and over is not subject to an annual cost-of-living adjustment and remains $1,000, for a total of $7,000 for 2019.

If you’re under 50, this means $115.38 per week; if you’re 50+, you can save $134.61 per week for 52 weeks to reach the total.

The income ranges for making deductible contributions to traditional IRAs to contribute to Roth IRAs and to claim the saver’s credit all increased for 2019.

You can deduct contributions to a traditional IRA if you meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced (phased out), until it is eliminated, depending on filing status ( single, head of household, married filing jointly, and married filing separately) and your income. If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply, and you can save the full amount.

Call me for the ranges, if you wish, and I’ll pass them along.

If you are negotiating your divorce settlement, please don’t forget to include which filing status you will use for 2018, 2019 and on. It may make a substantial difference in the amount of tax due.

Don’t let this opportunity to save for your future, using either Traditional or Roth IRA options, pass you by. You can gain either tax advantages for your current filing year or enrich your future. Contact me at 716-817-6425 for further information.

Don’t wait too long!

Avoid the common mistakes most women make about money, especially when they are in crisis- divorce, widowed, etc.  Schedule a free consultation with me at Calendly.com/contactagrace; or call me at 716-817-6425.