Some retirement numbers have changed for this year, ranging from ages to income amounts, so it is always important to stay up to date on all of the latest changes and benefits, whether you’re retiring to one of the best retirement communities in Dallas TX, such as one of the Ladera communities, or elsewhere. However, for anyone planning on retiring this year, here are a few tips to make the transition go smoothly so you can start enjoying your well-earned free time.
There is typically an option to keep your retirement savings in your former employer’s 401(k) plan, or you may choose to roll it over into an individual retirement account (IRA). The choice comes down to costs and range of choices. Transferring to an IRA is typically the best choice because of the breadth of investment choices available. In addition, if you have multiple 401(k) accounts from previous employers, it helps to combine them all into one IRA. Best of all, you can investigate multiple IRA options to find the lowest fees to further stretch your investment.
Make sure you sign up for Medicare on time, during the seven-month window around your 65th birthday. By signing up during this initial enrollment period, you won’t face penalties that could be added to your Medicare Part B and Part D premiums for late enrollment.
It is also important to decide when you are going to begin claiming Social Security. The age at which you begin claiming benefits has an impact on the amount. If you begin claiming before you reach your full retirement age, payments are reduced. However, with each year you delay claiming after your full retirement, up to the age of 70, you can significantly boost your payments. In other words, if you are healthy, you should consider delaying your payments for as long as possible.
While it may be a benefit to delay some benefits, by the time you are 70.5, you must make annual required minimum distributions (RMD), or withdrawals. If you don’t take out the required amount, you face a penalty of 50 percent of the amount that should have been withdrawn, in addition to the income tax that is due.
If you are retiring this year, it is a good idea to meet with a retirement advisor to make sure you are up to date on all of the deadlines and benefits available. This way you have a clear understanding of your financial situation and can relax and enjoy your new life at Ladera, one of the best retirement communities in Dallas TX.