Retirement

Uncertainty is a Keyword in 2024

Points In Time For Income Distributions

• Age 50 (catch-up contributions permitted. Requirement to use Roth Option if earnings are $145,000 or more, effective 2024. How are you making catch-up contributions to your retirement plan? 
• Age 55 (bridge for income need before age 59 1/2/ and Income Annuity with guaranteed 10 years. Did you know you can avoid the penalty for accessing retirement plans? A not-so-widely known provision, 72T, is a little-used opportunity for high earners or high savers in retirement plans. This provision permits income distributions before age 59 ½ if the distributions are substantially recurring for the greater of 5 years or age 59 ½. The vehicle is an income annuity or the cash value of a whole life insurance policy.)
• Whole life is used as a bridge to adequate income in retirement, and a 10% penalty is avoided.
• Age 59 ½ (Date when penalty-free distributions may be taken.)
• Age 62 (May begin to access Social Security Benefits.)
• Age 72 (72T is a little utilized opportunity for high earners or high savers in retirement plans.)
• Age 73 (Current age for Initial RMD.)
• Age 85 (QLAC)