Unforgettable Birthdays

Birthdays may seem less important as you grow older. They may not offer the impact of watershed moments, such as getting a driver’s license at 16 and voting at 18. But beginning at age 59, there are several key birthdays that can affect your tax situation, health-care eligibility, and retirement benefits.

59½ — You can start taking penalty-free withdrawals from IRAs and qualified retirement plans, provided certain conditions are met. Ordinary income taxes generally apply to these distributions. (Withdrawals taken prior to age 59½ are subject to a 10% federal income tax penalty.)

62 — You are eligible to start collecting Social Security benefits, although your benefit will be reduced by up to 30%. To receive full benefits, you must wait until “full retirement age,” which ranges from 65 to 67, depending on the year you were born.

65 — You are eligible to enroll in Medicare. Medicare Part A Hospital Insurance benefits are automatic for those eligible for Social Security. Part B Medical Insurance benefits are voluntary and have a monthly premium. To obtain coverage at the earliest possible date, you should generally enroll about two to three months before turning 65.¹

70½ — You must start taking minimum distributions from most tax-deferred retirement plans or face a 50% penalty on the amount that should have been withdrawn. Annual required minimum distributions are calculated according to life expectancies determined by the federal government.

Source: 1) Medicare & You 2012, U.S. Department of Health and Human Services

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2012 Emerald Connect, Inc.

Securities products & services offered through Royal Alliance Associates, Inc. Member FINRA/SIPC, a registered broker-dealer. In this regard, this communication is strictly intended for individuals residing in the states of (AZ, CA, FL, MD, MO, NC, NJ, NV, NY,OR, TX, VA, WA ). No offers may be made or accepted from any resident outside the specific state(s) referenced.

Todd Rustman is also separately registered as an investment advisor representative under GR CAPITAL ASSET MANAGEMENT, LLC., a Registered Investment Advisor. As such, advisory services are strictly intended for individuals residing in the states where we have notice filed: (CA).

Insurance services offered by Todd Rustman as an agent seperate from Royal Alliance Associates, Inc.

Additional advisory services offered through Royal Alliance Associates, Inc., a Registered Investment Advisor.

Worth Top Wealth Advisors are selected based on experience, education, certifications, fiduciary status, compliance record, wealth management services, methods of compensation and scope of current business. This award has been discontinued by Worth.

Third party rankins and recognitions are no guarantee of future investment success and do not ensure that a client or perspective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they repersentative of any one client's evaluation.

IMPORTANT CONSUMER INFORMATION:

A broker-dealer, investment adviser, BD agent, or IA rep may only transact business in a state if first registered, or is excluded or exempt from state broker-dealer, investment adviser, BD agent or IA rep registration requirements, as appropriate. Follow-up, individualized responses to persons in a state by such a firm or individual that involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without first complying with appropriate registration requirement, or an applicable exemption or exclusion.

For information concerning the licensing status or disciplinary history of broker-dealer, investment adviser, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.