HAPPY BIRTHDAY TO YOU

Birthdays mean getting to drive, getting to vote, and getting to drink (legally). But after turning 21 and especially after turning 29 (over and over again), birthdays lose some of their luster. However, beginning at age 59, there are several key birthdays that can affect your legal status, taxes, health-care eligibility, and retirement benefits. Consider the gifts of time:

59: You may start taking penalty-free withdrawals from IRAs and qualified retirement plans—providing that certain conditions are met. Ordinary income taxes generally apply to these distributions. (Withdrawals taken prior to age 59 are generally subject to a 10 percent federal income tax penalty).

62: You are eligible to start collecting Social Security benefits, but your benefit will be reduced by up to 30 percent. To receive full benefits, you must wait until “full retirement age,” ranging from 65 to 67, depending upon the year that you were born.

65: You are eligible to enroll in Medicare. Medicare part A Hospital Insurance benefits are automatic for those eligible for Social Security. Part B benefits are voluntary and have a monthly premium. To get coverage as early as possible, enroll about two to three months before turning 65.

70: You should start taking minimum distributions from most tax-deferred retirement plans or face a 50 percent penalty on the amount that should have been withdrawn.