Mark Your Calendar: 6 Birthdays to Know for Retirement

There are important milestone ages to note before and throughout retirement. Mark these birthdays on your calendar to boost your retirement income and avoid unnecessary penalties.

(Image credit: Getty Images)

They say birthdays get less exciting as we get older, however, there are important ages to keep in mind as you plan for retirement.

Age 50

Starting at age 50, you can take advantage of key tax breaks by putting away more money in your tax-deferred retirement accounts. Workers who are 50 or older are allowed to make catch-up contributions to their 401(k)s and IRAs. That means those 50 and older can save an additional $6,500 in a 401(k) for a total of $26,000 in 2020 and 2021. They can also put an extra $1,000 in an IRA per year for a total of $7,000 in 2020 and 2021.

Not only do catch-up contributions allow you to put more money away for retirement, you are also reducing your taxable income for the year. The money you put into these accounts grows tax-deferred until you withdraw it in retirement. Besides the tax benefits, maxing out your contributions is an important part of building your nest egg and increasing your retirement security.


This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Tony Drake, CFP®, Investment Advisor Representative
Founder & CEO, Drake and Associates

Tony Drake is a CERTIFIED FINANCIAL PLANNER™and the founder and CEO of Drake & Associates in Waukesha, Wis. Tony is an Investment Adviser Representative and has helped clients prepare for retirement for more than a decade. He hosts The Retirement Ready Radio Show on WTMJ Radio each week and is featured regularly on TV stations in Milwaukee. Tony is passionate about building strong relationships with his clients so he can help them build a strong plan for their retirement.