Social security, medicare, and RMD checklist

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stlrick
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Social security, medicare, and RMD checklist

Post by stlrick » Wed Jun 01, 2011 8:57 am

Passing through the mid-60's reminds me of being in the late teens. In the teens, you start going through a series of age-based eligibilities and requirements. At 17 I could get a driver's license, at 18 I had to register with the Selective Service, at 21 I could go to a bar, and at 25 I could rent a car. Since then, I can't think of any similar age-based milestones, but they are starting up again now. Can anyone direct me to a comprehensive check-list of what comes up at specific ages? There would need to be two lists - one for individuals who are not employed, and one for individuals who continue employment and continue to have both health coverage and to make retirement contributions with an employer (even into their 70's). The lists would need to cover social security, medicare and RMD's. Are there other categories that should also be included?

Thanks,
Rick

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Post by sscritic » Wed Jun 01, 2011 9:20 am

Why do you want a checklist for people who don't have your characteristics?

I could find all sorts of rules for people who aren't like me at all. For example, I wonder what Warren Buffet is facing as he ages, but it just isn't relevant to my life.

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Post by NoVa Lurker » Wed Jun 01, 2011 9:37 am

I was hoping to see an answer to this. My wife's parents and my parents are all in their late 50s, and I'd love an at-a-glance age chart to show what they're eligible for (or how the impacts of certain actions may change) over the next decade for them.

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Boglenaut
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Post by Boglenaut » Wed Jun 01, 2011 9:45 am

I don't know of the checklists, but sure someone will have a link for you.

You could have run for President of the U.S. at 35 had you noticed and met other requirements. That's one of the few mid-life ones I know of.

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Post by sscritic » Wed Jun 01, 2011 9:48 am

I just did a google search for "at-a-glance age chart to show what they're eligible for" and you are the number one response.

http://www.google.com/search?q=at-a-gla ... igible+for

Can you recommend some other search string so I can find what you are looking for?

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OAG
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Post by OAG » Wed Jun 01, 2011 9:49 am

A bit older and I remember these things a bit differently:

Driver's License at 16 (had been driving since about age 11 in the country and about 13 in the city).

Never registered for the Draft as I enlisted in the Army at age 17 (and retired 21 years later). Medical care provided while on AD at "no cost" and at "low cost" between retirement and Medicare (65). Medical care now provided at "low cost" (mail order prescriptions) by Tricare for Life. Wonder how long this will continue.

Was drinking at age 17 in the Army and before that prior to enlisting.

Don't remember any other "gate posts" or age related items until about now, and these are pretty well set in concreate (no fudging). Medicare at 65. SS at 62, SS withdrawn at 67 and restarted at 67.5 (this is more or less set in concrete now). IRA RMD's started this year (age 70.5 - actually could have waited another year, but then would have had to douple up the RMD).

So OP like everything else I guess "it depends". Doubt a chart would fit everyone.
Last edited by OAG on Wed Jun 01, 2011 9:56 am, edited 2 times in total.
OAG=Old Army Guy. Retired CW4 USA (US Army) in 1979.

MoneyOCD
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Post by MoneyOCD » Wed Jun 01, 2011 9:54 am

Guess it would be great to create one here and put on wiki.
Collective mind probably can come up with all possible milestones from age 50 and forward.

I can start :
Age 50 - eligible for catch up contributions in IRA , 401k, 403b.

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ruralavalon
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Post by ruralavalon » Wed Jun 01, 2011 10:07 am

Age 50 - eligible for catch up contributions in IRA , 401k, 403b.
Age 59 1/2 - withdrawals from IRA, 401k w/o penalty, with limitations
Age 62 - early retirement on Social Security
Age 65 - medicare eligibility
Age 70 1/2 - Required Minimum Distributions from IRA
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Post by 2beachcombers » Wed Jun 01, 2011 10:14 am

ruralavalon wrote:Age 50 - eligible for catch up contributions in IRA , 401k, 403b.
Age 59 1/2 - withdrawals from IRA, 401k w/o penalty, with limitations
Age 62 - early retirement on Social Security
Age 65 - medicare eligibility
Age 70 1/2 - Required Minimum Distributions from IRA
and a lot of folks miss these:

age 66--eligible for half of spouse's SS--with delayed SS
age 70--last age for max SS-- if SS is delayed to 70

jerry

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Post by sscritic » Wed Jun 01, 2011 10:17 am

OK. Here is a date for everyone. Do you remember all that money you contributed to a 403(b) before January 1, 1987? As long as you don't take any money other than your RMD based on the remaining portion of your 403(b), you don't have to take an RMD on the pre-1987 money until later.

This should definitely be on everyone's list.
Q–2. To what benefits under section 403(b) contracts do the distribution rules provided in section 401(a)(9) apply?

A–2. (a) The distribution rules provided in section 401(a)(9) apply to all benefits under section 403(b) contracts accruing after December 31, 1986 (post-'86 account balance). The distribution rules provided in section 401(a)(9) do not apply to the undistributed portion of the account balance under the section 403(b) contract valued as of December 31, 1986, exclusive of subsequent earnings (pre-'87 account balance). Consequently, the post-'86 account balance includes earnings after December 31, 1986 on contributions made before January 1, 1987, in addition to the contributions made after December 31, 1986 and earnings thereon.

(b) The issuer or custodian of the section 403(b) contract must keep records that enable it to identify the pre-'87 account balance and subsequent changes as set forth in paragraph (b) of this A–2 and provide such information upon request to the relevant employee or beneficiaries with respect to the contract. If the issuer or custodian does not keep such records, the entire account balance will be treated as subject to section 401(a)(9).

(c) In applying the distribution rules in section 401(a)(9), only the post-'86 account balance is used to calculate the required minimum distribution for a calendar year. The amount of any distribution from a contract will be treated as being paid from the post-'86 account balance to the extent the distribution is required to satisfy the minimum distribution requirement with respect to that contract for a calendar year. Any amount distributed in a calendar year from a contract in excess of the required minimum distribution for a calendar year with respect to that contract will be treated as paid from the pre-'87 account balance, if any, of that contract.

(d) If an amount is distributed from the pre-'87 account balance and rolled over to another section 403(b) contract, the amount will be treated as part of the post-'86 account balance in that second contract. However, if the pre-'87 account balance under a section 403(b) contract is directly transferred to another section 403(b) contract, the amount transferred retains its character as a pre-'87 account balance, provided the issuer of the transferee contract satisfies the recordkeeping requirements of paragraph (b) of this A–2.

(e) The distinction between the pre-'87 account balance and the post-'86 account balance provided for under this A–2 has no relevance for purposes of determining the portion of a distribution that is includible in income under section 72.

Q–3. Must the pre-'87 account balance be distributed in accordance with the incidental benefit requirement?

A–3. Yes, the pre-'87 account balance must be distributed in accordance with the incidental benefit requirement of §1.401–1(b)(1)(i). Distributions attributable to the pre-'87 account balance are treated as satisfying this requirement if all distributions from the section 403(b) contract (including distributions attributable to the post-'86 account balance) satisfy the requirements of §1.401–1(b)(1)(i) without regard to this section, and distributions attributable to the post-'86 account balance satisfy the rules of this section. Alternatively, distributions attributable to the pre-'87 account balance are treated as satisfying the incidental benefit requirement if all distributions from the section 403(b) contract (including distributions attributable to both the pre-'87 account balance and the post-'86 account balance) satisfy the rules of this section.
http://law.justia.com/cfr/title26/26-5. ... 3.110.html

Now here is a question for you. If you don't have to take out your pre-1987 contributions at the same time as your other RMDs, when do you have to take them out?

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Watty
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Post by Watty » Wed Jun 01, 2011 10:49 am

Here is a list this I made up and added a few items after posting it on another message board. I have a spreadsheet with these dates for both my wife and myself using the actual dates. If you have a traditional pension there will be other dates for the pension.



age 50

Begin catch up contributions to 401K and IRA


Jan 1 the year you turn 55

Need to be employed to qualify for penalty free 401k withdrawal at 55


age 55

Can start early penalty free withdrawal from 401k if you qualify


age 59.5

May be possible to do an "in service non-hardship" withdrawal to roll money from pension plan or 401k to an IRA while employed and without a penality or taxes



age 59.5

Penalty free withdrawals from IRA, 401k etc


age 60

Begin SS benefits at age 60 if you're a surviving spouse and have not remarried.


age 62 to 65

Additional property tax exclusions. Check your local rules. My county does not charge you the school property taxes after the age of 62. This will drop my property taxes by about two thirds. You have to apply for this by a specific date to get it. They don't exactly advertise this so many people miss it or assum that it starts at 65 and pay more taxes than they need to.


age 62

Eligible to start reduced Social Security (apply three months before)


age 63.5

18 months of COBRA insurance will get you to Medicare


age 64.75

Apply for Medicare three months before your 65th birthday


age 65

Eligible to start Medicare


age 65 to 67

Full social security age


age 70

Maximum delayed social security (apply three months before)


age 70.5

Required IRA distributions start.



35 years of full time work.

Your Social security benefits are calculated on your top 35 years of earning adjusted for inflation. After 35 years of full time work you will not have any zero years so working more will have minimal impact on your Social security benefits.



Any more additions?

stlrick
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Post by stlrick » Wed Jun 01, 2011 10:56 am

sscritic wrote:Why do you want a checklist for people who don't have your characteristics?

I could find all sorts of rules for people who aren't like me at all. For example, I wonder what Warren Buffet is facing as he ages, but it just isn't relevant to my life.
My wife is retiring at 62. I plan to retire at 72. Good enough for you?

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Post by NoVa Lurker » Wed Jun 01, 2011 10:58 am

Thanks Watty!

stlrick
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Post by stlrick » Wed Jun 01, 2011 11:10 am

sscritic wrote:I just did a google search for "at-a-glance age chart to show what they're eligible for" and you are the number one response.

http://www.google.com/search?q=at-a-gla ... igible+for

Can you recommend some other search string so I can find what you are looking for?
I did a number of Google searches that led to nothing useful before posting the request.

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Post by sscritic » Wed Jun 01, 2011 11:12 am

I have noticed a lot of incorrect answers so far, particularly those concerning social security and RMDs. Do you really trust "the cloud" or the "wisdom of the hordes"? I think actual citations of laws and regulations would help a lot.

I think Watty is getting close to the right idea; the organization should be by age, not by activity. So I will get us started by giving an age and let's see what we can come up with. There are two types of ages: actual ages and look-back ages.

1) Age 90. What can you do before age 90 that you cannot do after age 90? What can you do after age 90 that you cannot do before age 90?

2) Three years before death. What do you want to do at least three years before death? What do you not want to do within three years of death?

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Post by sscritic » Wed Jun 01, 2011 11:18 am

stlrick wrote:
sscritic wrote:Why do you want a checklist for people who don't have your characteristics?

I could find all sorts of rules for people who aren't like me at all. For example, I wonder what Warren Buffet is facing as he ages, but it just isn't relevant to my life.
My wife is retiring at 62. I plan to retire at 72. Good enough for you?
Not really. Your RMDs might start based on when you turn 70 1/2 and they might not. More facts are needed. This is one reason I mentioned that most of the answers about RMDs are incorrect as stated.
If you are still employed at age 70.5 and you participate in a qualified plan, 403(b) governmental 457(b) account, you may be allowed to defer the start of your RMDs until after you retire.
The facts matter, even for you.

P.S. I am not responsible for the punctuation of the quoted passage.

stlrick
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Post by stlrick » Wed Jun 01, 2011 11:46 am

sscritic wrote:
stlrick wrote:
sscritic wrote:Why do you want a checklist for people who don't have your characteristics?

I could find all sorts of rules for people who aren't like me at all. For example, I wonder what Warren Buffet is facing as he ages, but it just isn't relevant to my life.
My wife is retiring at 62. I plan to retire at 72. Good enough for you?
Not really. Your RMDs might start based on when you turn 70 1/2 and they might not. More facts are needed. This is one reason I mentioned that most of the answers about RMDs are incorrect as stated.
If you are still employed at age 70.5 and you participate in a qualified plan, 403(b) governmental 457(b) account, you may be allowed to defer the start of your RMDs until after you retire.
The facts matter, even for you.

P.S. I am not responsible for the punctuation of the quoted passage.
sscritic:

I don't understand why my question seems to have ticked you off. You've been incredibly helpful to me and others on many occasions. Of course the individual details matter. What is the problem with asking if anyone is aware of a comprehensive general list (which ought to include the details and exceptions) that combined the lists that one finds about social security eligibility, medicare eligibility, and RMD requirements (and, as Watty's list indicates, other age-specific regulations regarding retirement asset accumulations)?

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Post by sscritic » Wed Jun 01, 2011 12:02 pm

stlrick wrote: sscritic:

I don't understand why my question seems to have ticked you off. You've been incredibly helpful to me and others on many occasions. Of course the individual details matter. What is the problem with asking if anyone is aware of a comprehensive general list (which ought to include the details and exceptions) that combined the lists that one finds about social security eligibility, medicare eligibility, and RMD requirements (and, as Watty's list indicates, other age-specific regulations regarding retirement asset accumulations)?
Sorry, got out of the bed on the wrong side? :)

I will admit that if someone posts "will someone please explain social security" my first reaction is "are you serious?" It's just too complicated. If someone says, "I have a friend whose husband just died. She is 63. She is eligible for her own benefit of $xxx and her husband was collecting $yyy. Should she take her own benefit and switch to a widow later or start as a widow and switch to her own later?" I am much more likely to dig in and answer in full detail.

My first reaction to your request was that it was impossibly broad (and I got out of the bed on the wrong side).

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soaring
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Post by soaring » Wed Jun 01, 2011 12:12 pm

age 66--eligible for half of spouse's SS--with delayed SS
That is one I almost missed. But because I always read all SScritic postings regarding SS I knew.

Just began receiving this last month on wife's SS while waiting for 70. I still don't understand why this benefit exists but I'm not complaining.
Desiderata

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Post by sscritic » Wed Jun 01, 2011 12:20 pm

soaring wrote:
age 66--eligible for half of spouse's SS--with delayed SS
That is one I almost missed. But because I always read all SScritic postings regarding SS I knew.
The only problem is that as stated it is not true without some other conditions, like when you were born, and that it isn't really 1/2 of what your spouse is collecting, but 1/2 of what your spouse could have collected under still other conditions. But as an incorrect statement, it isn't 1/2 bad. (I love my own jokes!)

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gotherelate
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Post by gotherelate » Wed Jun 01, 2011 1:06 pm

One of my favorites is/was at age 55 one qualifies for the senior menu at IHOP.
-Grandpa | I'd rather see where I'm going than see where I've been.

sscritic
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Post by sscritic » Wed Jun 01, 2011 1:17 pm

There are two local transit agencies. One gives a senior discount starting at 62 and the other at 65.

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LH
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Post by LH » Wed Jun 01, 2011 1:50 pm

Watty wrote:Here is a list this I made up and added a few items after posting it on another message board. I have a spreadsheet with these dates for both my wife and myself using the actual dates. If you have a traditional pension there will be other dates for the pension.



age 50
Begin catch up contributions to 401K and IRA

Jan 1 the year you turn 55
Need to be employed to qualify for penalty free 401k withdrawal at 55

age 55
Can start early penalty free withdrawal from 401k if you qualify

age 59.5
May be possible to do an "in service non-hardship" withdrawal to roll money from pension plan or 401k to an IRA while employed and without a penality or taxes

age 59.5
Penalty free withdrawals from IRA, 401k etc

age 60
Begin SS benefits at age 60 if you're a surviving spouse and have not remarried.

age 62 to 65
Additional property tax exclusions. Check your local rules. My county does not charge you the school property taxes after the age of 62. This will drop my property taxes by about two thirds. You have to apply for this by a specific date to get it. They don't exactly advertise this so many people miss it or assum that it starts at 65 and pay more taxes than they need to.

age 62
Eligible to start reduced Social Security (apply three months before)

age 63.5
18 months of COBRA insurance will get you to Medicare

age 64.75
Apply for Medicare three months before your 65th birthday

age 65
Eligible to start Medicare

age 65 to 67
Full social security age

age 70
Maximum delayed social security (apply three months before)

age 70.5
Required IRA distributions start.

35 years of full time work.
Your Social security benefits are calculated on your top 35 years of earning adjusted for inflation. After 35 years of full time work you will not have any zero years so working more will have minimal impact on your Social security benefits.

Any more additions?
Sweet list. I am gonna drop it in my spreadsheet : )

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Post by 2beachcombers » Wed Jun 01, 2011 2:01 pm

sscritic wrote:OK. Here is a date for everyone. Do you remember all that money you contributed to a 403(b) before January 1, 1987? As long as you don't take any money other than your RMD based on the remaining portion of your 403(b), you don't have to take an RMD on the pre-1987 money until later.

This should definitely be on everyone's list.
Q–2. To what benefits under section 403(b) contracts do the distribution rules provided in section 401(a)(9) apply?

A–2. (a) The distribution rules provided in section 401(a)(9) apply to all benefits under section 403(b) contracts accruing after December 31, 1986 (post-'86 account balance). The distribution rules provided in section 401(a)(9) do not apply to the undistributed portion of the account balance under the section 403(b) contract valued as of December 31, 1986, exclusive of subsequent earnings (pre-'87 account balance). Consequently, the post-'86 account balance includes earnings after December 31, 1986 on contributions made before January 1, 1987, in addition to the contributions made after December 31, 1986 and earnings thereon.

(b) The issuer or custodian of the section 403(b) contract must keep records that enable it to identify the pre-'87 account balance and subsequent changes as set forth in paragraph (b) of this A–2 and provide such information upon request to the relevant employee or beneficiaries with respect to the contract. If the issuer or custodian does not keep such records, the entire account balance will be treated as subject to section 401(a)(9).

(c) In applying the distribution rules in section 401(a)(9), only the post-'86 account balance is used to calculate the required minimum distribution for a calendar year. The amount of any distribution from a contract will be treated as being paid from the post-'86 account balance to the extent the distribution is required to satisfy the minimum distribution requirement with respect to that contract for a calendar year. Any amount distributed in a calendar year from a contract in excess of the required minimum distribution for a calendar year with respect to that contract will be treated as paid from the pre-'87 account balance, if any, of that contract.

(d) If an amount is distributed from the pre-'87 account balance and rolled over to another section 403(b) contract, the amount will be treated as part of the post-'86 account balance in that second contract. However, if the pre-'87 account balance under a section 403(b) contract is directly transferred to another section 403(b) contract, the amount transferred retains its character as a pre-'87 account balance, provided the issuer of the transferee contract satisfies the recordkeeping requirements of paragraph (b) of this A–2.

(e) The distinction between the pre-'87 account balance and the post-'86 account balance provided for under this A–2 has no relevance for purposes of determining the portion of a distribution that is includible in income under section 72.

Q–3. Must the pre-'87 account balance be distributed in accordance with the incidental benefit requirement?

A–3. Yes, the pre-'87 account balance must be distributed in accordance with the incidental benefit requirement of §1.401–1(b)(1)(i). Distributions attributable to the pre-'87 account balance are treated as satisfying this requirement if all distributions from the section 403(b) contract (including distributions attributable to the post-'86 account balance) satisfy the requirements of §1.401–1(b)(1)(i) without regard to this section, and distributions attributable to the post-'86 account balance satisfy the rules of this section. Alternatively, distributions attributable to the pre-'87 account balance are treated as satisfying the incidental benefit requirement if all distributions from the section 403(b) contract (including distributions attributable to both the pre-'87 account balance and the post-'86 account balance) satisfy the rules of this section.
http://law.justia.com/cfr/title26/26-5. ... 3.110.html

Now here is a question for you. If you don't have to take out your pre-1987 contributions at the same time as your other RMDs, when do you have to take them out?
I guess you take it out after RMDs are exhausted ? Same as post tax contributions.

And a question: --It only applies to 403b ?? Not 401s?

jerry

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LH
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Post by LH » Wed Jun 01, 2011 2:04 pm

actually, already had most of it in there, but had forgotten I had done it lol. Still a sweet list, you have about 3-4 things I did not have, much thanks : )

Some other things I put on my financial "life list" that are in a somewhat different vein.

when my mortgage will be paid off
when my daughters will be in college
the years where I expect to pay for daughters car/car insurance
daughters possible weddings mention as a possible expense

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Post by sscritic » Wed Jun 01, 2011 2:32 pm

2beachcombers wrote: I guess you take it out after RMDs are exhausted ? Same as post tax contributions.

And a question: --It only applies to 403b ?? Not 401s?
I only know the 403(b) rule, since that is what I have (my point about your list should be you specific). The answer is 75 or when you stop working, whichever is later. (Actually, the calendar year you reach 75 or 4/1 of the year after you retire.)
Pub 571 wrote:You must receive all, or at least a certain minimum, of your interest accruing after 1986 in the 403(b) plan by April 1 of the calendar year following the later of the calendar year in which you become age 70½, or the calendar year in which you retire.

Check with your employer, plan administrator, or provider to find out whether this rule also applies to pre-1987 accruals. If not, a minimum amount of these accruals must begin to be distributed by the later of the end of the calendar year in which you reach age 75 or April 1 of the calendar year following retirement.
http://www.irs.gov/publications/p571/ch08.html

The first sentence for all contributions and earnings after 1986 is the normal 403(b) rule of 4/1 of the year following the year you reach 70 1/2 or following the year in which you retire*. The last sentence covers the pre-1987 contributions and earnings (if your provider has kept proper records, which is why you have to check with them to see if they have messed up and you have to use the regular rule).

* Note that the normal rule for a 403(b) doesn't require you to start at 70 1/2 if you are still working.

Note also the difference in the wording. One says 4/1 of the later of two years. The other says the later of 4/1 after one year or 12/31 of another year.

403bwise explains it this way:
What about distribution requirements for 403(b) money contributed prior to December 31, 1986?

403(b) account balances that existed on December 31, 1986 are not subject to the age 70 1/2 distribution requirement. However, any earnings on that balance are. Distribution from the 12/31/86 balance needs to start at age 75. This requirement is not found in the Internal Revenue Code, but rather in a letter ruling. Also, any distributions in excess of required distributions are deemed to reduce the 12/31/86 balance. So, if any money has been taken out of the 403(b) account other than those that are required (such as a partial withdrawal or a deemed distribution), the 12/31/86 balance may be less than anticipated.
http://www.403bwise.com/faqs/index.html

My guess is that you could wait until December of the year you turn 75 as indicated by the IRS instead of strictly on your 75th birthday as stated by 403bwise. Of course if you are still working at 75, you don't have to take anything out according to the IRS.

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soaring
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Post by soaring » Wed Jun 01, 2011 2:38 pm

sscritic wrote:
soaring wrote:
age 66--eligible for half of spouse's SS--with delayed SS
That is one I almost missed. But because I always read all SScritic postings regarding SS I knew.
The only problem is that as stated it is not true without some other conditions, like when you were born, and that it isn't really 1/2 of what your spouse is collecting, but 1/2 of what your spouse could have collected under still other conditions. But as an incorrect statement, it isn't 1/2 bad. (I love my own jokes!)
Yeah I knew there were many conditions and I couldn't quote them but thought you might step in.

Still those that don't know need to find out how/if their circumstances fit to see if they can get any unexpected bucks.

thanks SScritic
Desiderata

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Post by sscritic » Wed Jun 01, 2011 2:39 pm

Here is how Fidelity asks the question on their RMD request form:
C. 403(b) Plans—December 31, 1986 Balances (Pre-1987 balances). To be completed by 403(b) Plan Participants Under Age 75.

Participants who are under age 75 may exclude from their MRD calculation any amounts accumulated in the 403(b) plan as of December 31, 1986. If you are eligible, and if account balances as of December 31, 1986, were accounted for separately, please indicate below if you want your entire plan balance to be included in your MRD calculation or if you want to exclude your adjusted December 31, 1986, balance.

Any amounts taken from this account, other than MRD payments, must reduce your December 31, 1986, 403(b) balance. This amount is called your adjusted December 31, 1986, balance.

I am under age 75 as of December 31 of the calendar year in which I am taking an MRD from my post-December 31, 1986, balance and request that Fidelity Investments (check one):

[box] Use my entire 403(b) Plan balance, including amounts accrued prior to December 31, 1986
[box] Exclude my adjusted December 31, 1986, 403(b) plan balance of $__________________________.
https://401k.fidelity.com/static/dcl/sh ... 333484.pdf

I bolded the portion that says that if you take more than your RMD, the excess comes from your pre-87 balance.

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Post by Alan S. » Wed Jun 01, 2011 8:51 pm

And that is why it does not work to roll your post 86 403b balance to an IRA and leave the pre 87 accruals in the plan hoping to shield them from RMDs until 75.

If you did that, your pre 87 balance would be included in the IRA rollover and what is left in the 403b would be post 86 accruals and subject to RMDs at 70.5 (subject to the still working exception).

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Post by joe8d » Wed Jun 01, 2011 9:47 pm

Passing through the mid-60's reminds me of being in the late teens. In the teens, you start going through a series of age-based eligibilities and requirements. At 17 I could get a driver's license, at 18 I had to register with the Selective Service, at 21 I could go to a bar,
You forgot voting.Back in my day,you could go to a bar at 18 and had to be 21 to vote.Now it's reversed.
All the Best, | Joe

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Watty
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Post by Watty » Thu Jun 02, 2011 9:22 am

MoneyOCD wrote:Guess it would be great to create one here and put on wiki.
Collective mind probably can come up with all possible milestones from age 50 and forward.

I can start :
Age 50 - eligible for catch up contributions in IRA , 401k, 403b.


Does anyone know how to add the list to the wiki?

In addition to my origional list there were some good additions like when your mortqage will be paid off and when your kids will be done with college and financially independent.

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Post by House Blend » Thu Jun 02, 2011 9:41 am

Watty wrote:Any more additions?
Age 65-ish: your standard deduction increases.

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Post by stlrick » Thu Jun 02, 2011 11:12 am

House Blend wrote:
Watty wrote:Any more additions?
Age 65-ish: your standard deduction increases.
I've been doing a lot of searching since the original post yesterday morning and have not come up with anything additional. Based on the responses, we can tentatively conclude that there is not a good list out there, and Watty has given us a place to start. It would be a great addition to the wiki.

Pending correction of the terminology by sscritic, I would add 2beachcombers items:
Age 66 - If still employed, may be eligible to receive spousal social security benefits while delaying your own benefits.
Age 70 - No benefit to further delay in starting social security

Rick

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Post by BruceM » Thu Jun 02, 2011 12:58 pm

Watty wrote:Here is a list this I made up and added a few items after posting it on another message board. I have a spreadsheet with these dates for both my wife and myself using the actual dates. If you have a traditional pension there will be other dates for the pension.



age 50

Begin catch up contributions to 401K and IRA


Jan 1 the year you turn 55

Need to be employed to qualify for penalty free 401k withdrawal at 55


age 55

Can start early penalty free withdrawal from 401k if you qualify


age 59.5

May be possible to do an "in service non-hardship" withdrawal to roll money from pension plan or 401k to an IRA while employed and without a penality or taxes



age 59.5

Penalty free withdrawals from IRA, 401k etc


age 60

Begin SS benefits at age 60 if you're a surviving spouse and have not remarried.


age 62 to 65

Additional property tax exclusions. Check your local rules. My county does not charge you the school property taxes after the age of 62. This will drop my property taxes by about two thirds. You have to apply for this by a specific date to get it. They don't exactly advertise this so many people miss it or assum that it starts at 65 and pay more taxes than they need to.


age 62

Eligible to start reduced Social Security (apply three months before)


age 63.5

18 months of COBRA insurance will get you to Medicare


age 64.75

Apply for Medicare three months before your 65th birthday


age 65

Eligible to start Medicare


age 65 to 67

Full social security age


age 70

Maximum delayed social security (apply three months before)


age 70.5

Required IRA distributions start.



35 years of full time work.

Your Social security benefits are calculated on your top 35 years of earning adjusted for inflation. After 35 years of full time work you will not have any zero years so working more will have minimal impact on your Social security benefits.



Any more additions?
Watty
Good list!
A couple of clarifications and adds, particularly if this is, as one poster suggests, Wikki bound.....

Age 17 (18 if in highschool): last year for collecting parent-based Social Security retirement or survivorship benefits.

Age 24: Earliest time at which a parent may purchase a EE Savings bond and receive favorable tax treament on interest if used for child's future qualifying education expenses.

Age 30: Must fully withdraw any remaining balance from an owned Coverdell Educational Savings Account

Age 32-35: The election to waive an unsusidized qualifying preretirement survivorship annuity of a defined benefit plan.

Age 50: catchup contributions to all employer sponsored retirement plans that have an employee salary deferral component, such as a SIMPLE IRA, SARSEP, 403(b) and 457(b)....in addition to one's 401(k) and IRA.

Age 55: penalty free withdrawals from ones qualified retirement plan if they turn 55, separate from service and then make the withdrawal from the plan...in that order. (does not apply to IRAs)

Age 55: Employees with an ESOP may diversify up to 25% of company stock if employed at least 10 years. This rises to 50% at age 60.

Age 55: Eligible to make catchup contribution to ones HSA

Age 65 (and older): may no longer contribute to ones HSA

Age 70.5 - 1: The last year one may contribute to their traditional IRA

Age 70.5: The year one must begin minimum required distributions from traditional IRAs and employer sponsored retirement plans (employer plan RMDs may be delayed if employee continues to work)

I'm sure there are other age-triggering issues that I haven't mentioned (some I'm sure will hit me later :-)

BruceM

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Post by Dan999 » Thu Jun 02, 2011 1:07 pm

At full retirement age (66 +/-) you can continue to work and receive full social security with no penalties because you work. AKA double dipping.
Whether you should or not is questionable, but you can if you wish.

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Post by 2beachcombers » Fri Jun 03, 2011 1:04 pm

stlrick wrote:
House Blend wrote:
Watty wrote:Any more additions?
Age 65-ish: your standard deduction increases.
I've been doing a lot of searching since the original post yesterday morning and have not come up with anything additional. Based on the responses, we can tentatively conclude that there is not a good list out there, and Watty has given us a place to start. It would be a great addition to the wiki.

Pending correction of the terminology by sscritic, I would add 2beachcombers items:
Age 66 - If still employed, may be eligible to receive spousal social security benefits while delaying your own benefits.
Age 70 - No benefit to further delay in starting social security

Rick
66 applies only to a specific age group--sscritice will probably advise you to use:

at FRA you may be eligible to receive spousal ss bene while delaying your own SS to 70.

FRA=full retirement age.

also--dosen't matter if you are working or not.

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Post by stlrick » Sun Jun 05, 2011 9:52 am

It's an item that would not be of interest to most Bogleheads, but then again, we all have relatives or friends who may need to know:

Age 62 - Eligible for a reverse mortgage

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Post by Watty » Fri Sep 02, 2011 10:55 pm

The retirment dates from this thread are in the process of being added to the Wiki.

It is currentely a "work in progress" but you can see it at the link below and make improvements to it like any other Wiki page.

http://www.bogleheads.org/wiki/Checklis ... ment_dates

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Post by Epsilon Delta » Sat Sep 03, 2011 11:37 am

Watty wrote:The retirment dates from this thread are in the process of being added to the Wiki.

It is currentely a "work in progress" but you can see it at the link below and make improvements to it like any other Wiki page.

http://www.bogleheads.org/wiki/Checklis ... ment_dates
Consider adding:

54.5 -- Last date to establish Roth IRA so that all withdrawals are qualified after age 59.5.

Background.
1) Sometimes it is beneficial to convert traditional IRA or 401(k) assets to Roths in early retirement. Having the Roth become qualified as early as possible can make conversions more attractive because it removes the possibility of having to pay a penalty if you need access to the funds.
2) Backdoor Roths allow anyone with earned income can establish a token Roth with a few $100 at a credit union to start the five year clock.

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Post by LadyGeek » Sat Sep 03, 2011 8:37 pm

Upon further review, we put the article back to "Under Construction" status, meaning it's not ready for prime time. We found a few incorrect entries. There were also a few duplicate entries and additional clarifications. The review is still in process.

As for Social Security, I think it's more dangerous to suggest dates than leave them out. There are so many conditions and exceptions that if you ask two different people the same question, you'll get two different answers. Remember that this is an entitlement which needs a calculator just to see if you qualify.

RMDs / IRA / 401(k) also have exceptions, but are not as complicated as Social Security.

Can we restrict the table to only those that are clear-cut with no conditions or exceptions? Or, those that can be totally explained in a few sentences?

I hate to remove information, but it's more important that it be correct. I'd rather have someone go to the Roth IRA article and get the right information, or, ask in the forum; than to see a date but fail to realize that it didn't apply in their case.

Wiki article link: Checklist of important retirement dates

Epsilon Delta - Good suggestion, but I think this is a special application and not a general case.
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Post by LadyGeek » Mon Sep 05, 2011 7:49 pm

We've done additional collaboration and have made a number of clarifications. A number of references were added to show the information source. You can follow these links for more information.

Social Security remains; but is focused on age only, and with a top-level caveat.

Wiki article link: Checklist of important retirement dates

Comments / corrections / suggests are welcome. Wiki editors should update directly. It's still marked "Under Contruction" (in process).
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Post by Colorado13 » Mon Sep 05, 2011 8:36 pm

Age 26: Adult "children" no longer eligible for coverage under parents' medical insurance

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Post by LadyGeek » Mon Sep 05, 2011 8:59 pm

That's a good one, done. I added a reference to the Affordable Care Act.

Wiki article link: Checklist of important retirement dates

References would be appreciated, if possible.
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Post by Alan S. » Mon Sep 05, 2011 9:02 pm

Epsilon Delta wrote:
Watty wrote:The retirment dates from this thread are in the process of being added to the Wiki.

Consider adding:

54.5 -- Last date to establish Roth IRA so that all withdrawals are qualified after age 59.5.
This one is tricky. The 5 year holding period always starts 1/1 of the year the contribution is FOR and ends 5 years from that date . Therefore, the correct date is the tax deadline for making a contribution for the calendar year 5 years before the calendar year taxpayer reaches 59.5.

Example: Reach 59.5 this year. Must have made a 2006 contribution for which the last date was 4/15/2007.

There is also a reference in the wiki for the last date to make a TIRA contribution as being 6/30. That is incorrect. The correct final date is 4/15 of the year in which taxpayer reaches 70.5 if contribution is for preceding year. A contribution cannot be made FOR the year in which age 70.5 is reached.

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Post by BigFoot48 » Mon Sep 05, 2011 9:27 pm

Age 62: Eligible for National Park Senior Pass. http://www.nps.gov/findapark/passes.htm
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Post by S&L1940 » Mon Sep 05, 2011 11:09 pm

age 70, you can get automatic pass on jury duty if you so choose

I guess they figure you are too lame in the head to make decisions at 70...
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Post by sscritic » Mon Sep 05, 2011 11:18 pm

1530jesup wrote:age 70, you can get automatic pass on jury duty if you so choose
Is this true in all 50 states? If not, it doesn't belong.

P.S. You were asked to give a reference. Perhaps your reference will list the states where this is true.
References would be appreciated, if possible.

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Post by sscritic » Mon Sep 05, 2011 11:33 pm

I am going on jury duty in one week. I am looking at my questionnaire.
I have a medical condition ... (if under 70, a physician must complete section E. If over 70, explain in section D).
...
Other reason ... and age do not qualify for excuse.
In other words, being over 70 is not an automatic excuse to avoid jury duty in all counties in all fifty states. (In the previous post, I mentioned states, but in my state, counties use their own procedures.)

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Post by LadyGeek » Tue Sep 06, 2011 4:19 pm

Alan S. wrote:
Epsilon Delta wrote:Consider adding:

54.5 -- Last date to establish Roth IRA so that all withdrawals are qualified after age 59.5.
This one is tricky. The 5 year holding period always starts 1/1 of the year the contribution is FOR and ends 5 years from that date . Therefore, the correct date is the tax deadline for making a contribution for the calendar year 5 years before the calendar year taxpayer reaches 59.5.

Example: Reach 59.5 this year. Must have made a 2006 contribution for which the last date was 4/15/2007.

There is also a reference in the wiki for the last date to make a TIRA contribution as being 6/30. That is incorrect. The correct final date is 4/15 of the year in which taxpayer reaches 70.5 if contribution is for preceding year. A contribution cannot be made FOR the year in which age 70.5 is reached.
Thank you. This is not easy. I can combine the IRS Pub 590 references: When Can You Make Contributions?, and What Are Qualified Distributions?. However, there's a flowchart of what exactly a qualified Roth distribution means. Five years since the last contribution is the minimum. Do you think this should be in a table intended as a general reference? I'm thinking that you if you needed a Roth, you would not establish it so close to retirement (it would have been done already). This might be a narrowly focused application.

Can you please provide the approximate location of the TIRA date in error? It appears correct in Traditional IRA (Contribution Eligibility and Limits), unless I missed it
BigFoot48 wrote:Age 62: Eligible for National Park Senior Pass. http://www.nps.gov/findapark/passes.htm
Good tip, but I think it's outside the investing / retirement planning intent of this page. (FYI - National parks are free for the summer.)
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Post by Alan S. » Tue Sep 06, 2011 6:35 pm

In link scroll down to age 70.5. The 6/30 date should be eliminated and the following substituted: " Starting January 1st of the year in which you reach 70.5, traditional IRA contributions must stop...."

The footnote reference is OK and agrees with the above. Note that this applies to traditional IRAs, but NOT to Roth IRAs.

http://www.bogleheads.org/wiki/Checklis ... te_note-17

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