Retirement Plan - Employees

Key Dates as You Approach Retirement

By November 14, 2016 No Comments

At what age can retirement plan distributions begin? When can a person begin to receive Social Security? As you get closer to your retirement date you may start to wonder about your eligibility for certain withdrawals and programs you are entitled to receive. Refer to this timeline to remember important dates as you get closer to retirement.

  • 59 1/2: May withdraw money from qualified plans/IRAs without IRS penalty.1
  • 62: Earliest age to start Social Security.2
  • 65: Entitled to Medicare coverage.
  • 66-67: Social Security full retirement age.2
  • 70: Latest age to start Social Security.2
  • 70 1/2: Must start Required Minimum Distributions (RMDs).3

If you have any questions about your withdrawal options as you near retirement, please contact your retirement plan consultant.

¹If the retirement plan allows.
²Partial, full or late retirement age is based on the year you were born. See ssa.gov for details.
³If a participant in a qualified plan is still employed and not a greater than 5 percent owner, they are not required to start minimum distributions from that plan until they retire.
Distributions before the age of 59½ may be subject to an additional 10% early withdrawal penalty.
Distributions and withdrawals are subject to ordinary income taxes.
Source: Principal Financial Group
ACR#207478 09/16