Saturday, October 8, 2011


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distributions from most tax-deferred retirement plans or face a 50 percent penalty on the amount that should have been withdrawn.


About Lisa C Smith

Attorney Lisa C. Smith believes that many legal problems can be resolved by working out agreements, legal documents, and creative solutions for businesses and families. Her goal is to provide quality legal representation with personal service and respect.

Read more at Lisa C. Smith's website.

Social Media

Contact Lisa

Call for a consultation today at 210.863.7472

Lisa will meet with you in her downtown San Antonio office near the courthouse. For clients with pressing schedules, appointments may be conducted over the phone or after-hours.

This Blog is made available by the lawyer or law firm publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog/Web Site publisher. The Blog/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

  © Free Blogger Templates Photoblog III by 2008

Back to TOP