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Key Milestones for Wealth and Benefits Planning
Planning your financial future is essential at every life stage. From becoming an adult to enjoying retirement, knowing when to act can help you maximize benefits and opportunities. Here’s a concise guide to major milestones for financial responsibilities and benefits to help you prepare for each step of your journey.
Age 18
- Legal Adult – Gain full legal rights and responsibilities
- Health Insurance – Can remain on parents’ health insurance plan until
age 26
- Bank Accounts – Accounts held in a custodian’s name
(e.g., UTMA or UGMA) may need to be transferred to the child,
depending on state law
Age 21
- Bank Accounts: In some states, custodian accounts (e.g., UTMA or UGMA) are transferred to the beneficiary
Age 26
- Health Insurance – Must transition off parents’ health
insurance plan
Age 50
- Retirement Catch-Up Contributions – Eligible to make catch-up contributions to 401(k) plan and IRA
Age 55
- 401(k) Plan Withdrawals (if plan allows) – Penalty-free withdrawals from 401(k) plans if retired or leave your employer in the year you reach age 55 or after
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Age 59½
- IRA and 401(k) Plan Withdrawals – Access accounts for any reason without incurring a 10% additional tax penalty
Age 62
- Social Security – Eligible for early Social Security benefits, but with a reduction in the monthly amount
Age 65
- Eligible for Medicare – Enrollment period starts three months before turning 65 and ends three months after
- Social Security Full Retirement Age
(FRA) – For those born in 1937 or earlier; FRA gradually increases for those born later
Age 66 to 67
- Social Security Full Retirement Age
(FRA) – Depends on birth year; full benefits without reduction
Age 70
- Social Security – Maximum Social Security benefits if delayed until age 70
Age 73
- Required Minimum Distributions
(RMDs) – Must generally begin taking RMDs from certain retirement plans
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