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  • Writer's pictureHolzberg Wealth Management

Important Age Milestones to Consider for Your Financial Plan

Important Age Milestones to Consider for Your Financial Plan

Reaching certain age milestones may have meaningful impacts on your financial plan. In addition to celebrating another birthday and stage of life, there are many retirement, investing, and income tax elements linked to your age. Below is a list of some significant ages and planning considerations to keep in mind:


Planning Consideration


  • Eligible to be named as beneficiary of 529 plans and UGMA/UTMA accounts.


  • Child is no longer eligible for Child and Dependent Care Credit.


  • Child is no longer eligible for Child Tax Credit.


  • Earliest age of majority for custodial accounts in most states, meaning accounts should be registered solely in the name of the child.

  • Age of termination for some UGMA/UTMA accounts.

  • Children are no longer subject to 'kiddie tax' (unless they are a full-time student).


  • Latest age of majority for custodial accounts.

  • Age of termination for some UGMA/UTMA accounts.


  • Children who are full-time students are no longer subject to the 'kiddie tax.'


  • Maximum age adult children can stay on their parent's health insurance plan.


  • Eligible to contribute more to your retirement accounts (e.g., IRA, 401(k), 403(b), 457) by making a 'catch-up contribution.' The additional catch-up amounts by account for 2024 are as follows:

    • IRAs: $1,000

    • 401(k)s, 403(b)s, most 457s, TSPs: $7,500

    • SIMPLE Plans: $3,500

  • Eligible for Social Security benefits as a disabled widow/widower.


  • Eligible to make catch-up contributions to Health Savings Accounts (HSAs). The additional catch-up amount for 2024 is $1,000.

  • Eligible for exceptions to the 10% early distribution penalty for certain withdrawals from retirement accounts.

59 1/2

  • Eligible to withdraw funds from your IRA(s) without a 10% early distribution penalty.


  • Widows/Widowers are able to claim early survivor benefits from Social Security at a reduced rate.


  • Eligible to start receiving Social Security retirement benefits at a reduced rate. Note that taking Social Security at 62 results in a permanent reduction in benefits.

  • Eligible to qualify for a reverse mortgage.


  • Income reported on your tax return is used to determine Medicare Part B and D premiums (known as a 'two-year lookback'). Premiums fall into tiers – the higher your income, the higher your premium. Going forward, the Social Security Administration uses information from your most recent federal tax return to determine premiums.


  • Eligible to sign up for Medicare coverage. Timing is important here because Medicare's initial enrollment period lasts seven months – starting 3 months prior to turning 65 and ending 3 months after the month you turn 65.

  • Eligible to take withdrawals from HSAs for non-medical items without penalty.

  • Taxpayers receive an increase in the standard deduction.


  • Full Retirement Age (FRA) if born between 1943 and 1954.

66 and 2 months

  • Full Retirement Age if born in 1955.

66 and 4 months

  • Full Retirement Age if born in 1956.

66 and 6 months

  • Full Retirement Age if born in 1957.

66 and 8 months

  • Full Retirement Age if born in 1958.

66 and 10 months

  • Full Retirement Age if born in 1959.


  • Full Retirement Age if born in 1960 or later.


  • Maximum Social Security benefit is reached as a result of delaying receiving benefits.

70 1/2

  • Eligible to make a Qualified Charitable Distribution (QCD) to distribute up to $100,000 annually (indexed for inflation starting in 2024) tax-free from an IRA.


  • Age in which you must start taking Required Minimum Distributions (RMDs) from certain retirement accounts if you were born before 1960.


  • Age in which you must start taking Required Minimum Distributions (RMDs) from certain retirement accounts if you were born in 1960 or later.

Planning Opportunities

Now that we know the milestones and considerations to keep in mind when reaching those ages, there are also planning opportunities available that could potentially benefit you.

Roth Conversions

Roth Conversion can be a great way to reach your retirement goals and make smart tax moves throughout your financial journey. However, timing a Roth Conversion is essential because you do not want to end up with unintended consequences. For example, converting to a Roth IRA shortly before turning 65 may increase your Medicare premiums – because Medicare premiums are income-based, and making a Roth Conversion involves recognizing additional income in the year of the conversion.

Qualified Charitable Distributions (QCD)

If you are over 70 1/2, you are not relying on your Required Minimum Distributions (RMDs) to meet your current income needs, and you are charitably inclined, you may want to consider donating IRA assets to a qualified charity. IRA owners can donate up to $100,000 (indexed for inflation starting in 2024) tax-free each year to charity.

Delaying Social Security Benefits

According to the Congressional Research Service, just under 30% of Social Security applicants were 62 in 2021. While many factors go into the decision-making process of when to start taking Social Security, retirees receive higher benefits by delaying the start of Social Security. Additionally, once you begin taking Social Security, those benefits are locked in and will only change based on the annual cost of living adjustment. The choice between taking the benefits at 62 or waiting is complicated and personal. If you are having trouble weighing your options, talk to a financial professional about what might work best for you. You can schedule a complimentary, no-obligation call with us here!

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About the Author

Holzberg Wealth Management is a family-owned and operated financial planning and investment management firm based in Marin County, CA. As your financial advisors, we serve you as a fiduciary and are fee-only, so we never receive commissions of any kind. We help individuals and families like you in the greater San Francisco Bay Area and virtually nationwide with the financial decision-making process to organize, grow, and protect your assets.

** This writing is for informational purposes only. The author and Holzberg Wealth Management do not guarantee or otherwise promise any results that may be obtained from using this report. No reader should make any investment decision without first consulting their financial advisor and conducting their own research and due diligence. These commentaries, analyses, opinions, and recommendations represent the personal and subjective views of the author and do not constitute a recommendation, offer, or solicitation to make any securities transaction. The information provided in this report is obtained from sources that the author believes to be reliable. External links to third parties are being provided for informational purposes only. Holzberg Wealth Management is not affiliated with the third-party websites linked to, unless otherwise explicitly stated, and does not constitute an endorsement or approval by Holzberg Wealth Management of any of the third party’s products, services, or opinions.


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