Important Birthdays Over 50
By Community First Financial Advisors
Most children stop being “and-a-half” somewhere around age 12. Kids add “and-a-half“ to make sure everyone knows they’re closer to the next age than the last.
When you are older, “and-a-half” birthdays start making a comeback. In fact, starting at age 50, several birthdays and “half-birthdays” are critical to understand because they have implications regarding your retirement income.
Age 50
At age 50, workers in certain qualified retirement plans are able to begin making annual catch-up contributions in addition to their normal contributions. Those who participate in 401(k), 403(b), and 457 plans can contribute an additional $8,000 per year in 2026. Those aged 60, 61, 62, and 63 can contribute an additional $11,250 per year.
Those who participate in most Simple Individual Retirement Account (IRA) or Simple 401(k) plans can make a catch-up contribution of up to $4,000 in 2026 (or $5,250 for those aged 60, 61, 62, and 63). And those who participate in traditional or Roth IRAs can set aside an additional $1,100 a year.1,2
Age 59½
At age 59½, workers are able to start making withdrawals from qualified retirement plans without incurring a 10 percent federal income tax penalty. This applies to workers who have contributed to IRAs and employer-sponsored plans, such as 401(k) and 403(b) plans (457 plans are never subject to the 10 percent penalty). Keep in mind that distributions from traditional IRAs, 401(k) plans, and other employer-sponsored retirement plans are taxed as ordinary income.
Age 62
At age 62 workers are first able to draw Social Security retirement benefits. However, if a person continues to work, those benefits will be reduced. The Social Security Administration will deduct $1 in benefits for each $2 an individual earns above an annual limit. In 2026, the income limit is $24,480.3
Age 65
At age 65, individuals can qualify for Medicare. The Social Security Administration recommends applying three months before reaching age 65. It's important to note that if you are already receiving Social Security benefits, you will automatically be enrolled in Medicare Part A (hospitalization) and Part B (medical insurance) without an additional application.4
Age 65 to 67
Between ages 65 and 67, individuals become eligible to receive 100 percent of their Social Security benefit. The age varies, depending on birth year. Individuals born in 1955, for example, become eligible to receive 100 percent of their benefits when they reach age 66 years and 2 months. Those born in 1960 or later need to reach age 67 before they’ll become eligible to receive full benefits.5
Age 73
In most circumstances, once you reach age 73, you must begin taking required minimum distributions from a traditional Individual Retirement Account and other defined contribution plans. You may continue to contribute to a traditional IRA past age 70½ as long as you meet the earned-income requirement.
Understanding key birthdays may help you better prepare for certain retirement income and benefits. But perhaps more importantly, knowing key birthdays can help you avoid penalties that may be imposed if you miss the date.
1. If you reach the age of 50 before the end of the calendar year.
2. IRS.gov, 2025
3. SSA.gov, 2025
4. SSA.gov, 2025. Individuals can decline Part B coverage because it requires an additional premium payment.
5. SSA.gov, 2025
Copyright 2006- FMG Suite. All rights reserved.
FMG Suite does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances.
Check the background of your financial professional with .
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (Member /). Insurance products are offered through LPL or its licensed affiliates. Community First Credit Union and Community First Financial Advisors are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Community First Financial Advisors, and may also be employees of Community First Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Community First Credit Union or Community First Financial Advisors. Securities and insurance offered through LPL or its affiliates are:
Not Insured by NCUA or Any Other Government Agency
Not Credit Union Guaranteed
Not Credit Union Deposits or Obligations
May Lose Value
Community First Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services. Visit LPL Financial for more information.
The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state. Community First Financial Advisors is not registered as a broker-dealer or investment advisor.