8 key retirement deadlines you won’t want to miss

Taking steps at each of these stages could potentially help you maximize your income in retirement

 

YEARS BEFORE A TYPICAL RETIREMENT, key dates and deadlines pop up — things like being able to make catch-up contributions to your 401(k) plan and individual retirement accounts (IRAs) starting the year you turn age 50, or signing up for Medicare Part A at age 65, even if you’re still working. By keeping track of what happens when, you may be able to save more for your long-term goals, potentially lock in higher retirement income, avoid costly early withdrawal additional taxes or higher premiums on Medicare Part B, and more.

 

“Understanding and acting on these key dates can have a big impact on your retirement,” says Christopher Vale, senior vice president, Preferred Client Experience, Bank of America. It’s also a good idea to check in with your financial and tax advisors regularly in the years leading up to retirement to assess your progress toward your goals, he adds.

 

Below are eight important stops along the way to retirement readiness.

Find your age:

Age 50: Play catch-up
A woman outdoors on a field smiling

You’re now eligible to make catch-up contributions to 401(k) plans and other employer-sponsored retirement plans (if the plans permit catch-up contributions), as well as to IRAs.1 For IRAs, the annual catch-up contribution limit is $1,000. While that might not seem like much, if you invested an extra $1,000 per year from age 50 to 65, and your IRA earned a 6% return, you could have more than $25,000 in your retirement fund resulting from catch-up contributions alone.2 For 401(k) plans and other employer-sponsored retirement plans, the annual catch-up contribution limit is higher and adjusted for inflation periodically (the IRA limit may be increased for inflation as well). View the current annual contribution limits to help you determine how much more you can contribute.

 

An added benefit of increasing contributions to a tax-deferred traditional IRA or employer-sponsored retirement plan is that you may be able to reduce your current taxable income. However, beginning in 2026, those earning above a certain amount ($145,000 in wages, as adjusted, from the employer sponsoring the plan) will have to make any catch-up contributions on an after-tax Roth basis.

Did you know?

If you participate in a health savings account (HSA)-eligible high-deductible health plan and contribute to an HSA, you can make catch-up contributions to your HSA starting the year you turn age 55.
Age 59½: No more early withdrawal tax
A laptop with a tax form on the screen

Once you reach age 59½, withdrawals3 from employer-sponsored retirement plans and IRAs4 are generally no longer subject to the additional 10% federal tax on early withdrawals — though you still may owe regular income tax on the distributions. But it may be better to keep your retirement savings or investments intact so you don’t sacrifice potential growth, suggests Vale.

Age 60: Play super catch-up
Two women shopping at a farmer’s market

Near-retirees can be even more aggressive savers, thanks to a provision of the SECURE 2.0 Act that took effect in 2025. From the year you turn 60 through the year you turn 63, you can make larger catch-up contributions to your 401(k) or other workplace retirement plan accounts (plan rules permitting). See the current annual contribution limits for this year’s amount. This can be a boon to anyone who got a late start on retirement savings and now has the available resources to turbocharge their contributions.

Age 62: Social Security: to claim or not?
A Social Security card

Age 62 is the minimum age at which you can choose to begin receiving Social Security retirement benefits. But bear in mind that by claiming early, your monthly check will be up to 30% smaller than if you had waited until your full retirement age and 77% less than if you had held out until you qualified for maximum benefits at age 70.5 Read “Social Security: Aiming for smarter payments” for more insights.

Age 65: Time to apply for Medicare
A woman in a medical office talking to a medical professional

At age 65, if you’re already receiving Social Security, you’re automatically enrolled in Parts A and B of Medicare. But if you aren’t yet receiving Social Security, you’ll need to apply for Medicare. Given that healthcare costs typically rise with age — a third of the country’s healthcare spending goes toward those 65 and older even though that age group makes up only 18% of the population6 — this is crucial coverage.

Did you know?

With Medicare Part B, your premium may rise 10% for every year you didn’t sign up after your initial enrollment period, unless an exception applies.

Your initial enrollment period lasts for seven months, beginning three months before the month in which you turn age 65. Missing your enrollment date may mean higher premiums for the rest of your life, unless you qualify for a special enrollment period, such as when you lose coverage under an employer’s plan. But you can still sign up during one of the designated annual enrollment periods.7

Age 66-67: You’ve reached full retirement age
A group of people at a yoga class

Your full retirement age for Social Security is the age at which you become eligible for full or unreduced retirement benefits. The full retirement age ranges from 66 to 67, depending on the year you were born. You can get a rough idea of your benefits and the best time to begin taking them on our Social Security Calculator.

 

The amount of money you get depends largely on your lifetime earnings, but the average monthly Social Security benefit in January 2025 was $1,976.8 For a man who earned maximum taxable earnings ($160,200 in 2023 dollars) and starts collecting Social Security benefits in 2025, his lifetime Social Security benefits are projected to be $634,000.9

Age 70: Claim your maximum benefit
Lit candles spelling out seventy

If you’ve waited until your 70th birthday to begin taking Social Security, you’ll now get the biggest possible monthly benefit, which may be as much as 77% larger than if you had started receiving payments at age 62. Any further delay in claiming won’t increase the size of your check.

Age 73: Access what you’ve saved
A man sitting on a couch

Even if you don’t feel ready to start withdrawing funds from your IRAs and employer-sponsored retirement plans, the government generally requires you to do so once you reach age 73. The amounts of these required minimum distributions (RMDs)10 will vary from year to year, depending on the value of your non-Roth assets in your retirement plan accounts and your age.11

TIP

Starting at age 70½, you can make direct charitable gifts from an IRA, what’s called a qualified charitable distribution (QCD). Once RMDs kick in, a QCD counts toward your annual RMD.

Failing to take an RMD or taking an insufficient amount can result in costly additional taxes of 25% of what you should have withdrawn (or 10%, depending on how quickly you take the missed distributions). Choosing an appropriate distribution strategy can help you avoid issues and make the most of your retirement assets. For details on the latest legislation and regulation impacting your investment accounts, be sure to consult with your tax professional.

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1 Consult your tax advisor, as there are phase-out ranges for IRA contribution deductibility based on modified adjusted gross income (MAGI) ranges that are published annually and correspond to your federal tax filing status (married, filing jointly; married, filing separately; or single) and whether you or your spouse participate in an employer-sponsored retirement plan.

 

2 Investor.gov, Compound Interest Calculator, accessed March 2025.

 

3 The taxable portion of your withdrawal that is eligible for rollover into an individual retirement account (IRA) or another employer's retirement plan is subject to 20% mandatory federal income tax withholding, unless it is directly rolled over to an IRA or another employer plan. If you have not reached age 59½, the taxable portion of your withdrawal is also subject to a 10% additional tax, unless you qualify for an exception. Be sure you understand the tax consequences and your plan's rules for distributions before you initiate a withdrawal. Please note: You should consult your financial and tax advisors with specific questions about your personal situation if you are considering a withdrawal from your plan account.

 

4 For a distribution from a Roth IRA to be federally tax-free, it must be qualified. A qualified distribution from your Roth IRA may be made after a five-year waiting period has been satisfied (this period begins January 1 of the tax year of the first contribution or the year of conversion, if earlier, to any Roth IRA) and you (i) are age 59½ or older, (ii) are disabled, or (iii) qualify for a special purpose distribution such as the purchase of a first home (lifetime limit of $10,000). In situations where the original account owner is deceased and the five-year waiting period has been satisfied, distributions to the beneficiary are also considered a qualified distribution. If you take a non-qualified distribution of your Roth IRA contributions, any Roth IRA investment returns are subject to regular income taxes plus a possible 10% additional tax if withdrawn before age 59½ unless an exception applies. A special additional income tax provision applies for converted assets that are not withdrawn in a qualified distribution. If a non-qualified withdrawal is made within five years of the conversion, the earnings withdrawn will be subject to income tax, and the entire withdrawal may be subject to an additional tax unless an exception applies as applicable for conversions. Consult your tax advisor for details.


5 Social Security Administration, “When to Start Receiving Retirement Benefits,” May 2024.

 

6 Peterson-KFF Health System Tracker, “How do health expenditures vary across the population?,” January 2024.

 

7 Medicare.gov, “Avoid late enrollment penalties,” accessed February 2025.

 

8 Social Security Administration, “What is the average monthly benefit for a retired worker?,” January 2, 2025.

 

9 Urban Institute, “Social Security and Medicare Benefits and Taxes: 2023,” July 2023.

 

10 The required beginning date for RMDs is April 1 of the year after you turn age 73 (age 75 if you turn age 74 on or after January 1, 2033). You are required to take an RMD by December 31 each year after that. If you delay your first RMD until April 1 in the year after you turn age 73, you will be required to take two distributions in that year. Failure to take all or part of an RMD results in a 25% additional tax (or 10%, depending on how quickly you take the missed distributions) applicable to the amount of the RMD not withdrawn. Consult your tax advisor for more information on your personal circumstances.

 

11 Effective January 1, 2024, the SECURE 2.0 Act has eliminated RMDs for designated Roth accounts in employer-sponsored retirement plans during the lifetime of the owner.

 

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

 

Bank of America is a marketing name for the Retirement Services business of Bank of America Corporation.

 

This material should be regarded as educational information on Healthcare and Social Security considerations and is not intended to provide specific Healthcare and Social Security advice. If you have questions regarding your particular situation, please contact your legal or tax advisor.

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