55 this year. Any Financial changes?

[captain3d]

I found that I can contribute an extra $1000 to my HSA this year as I will be 55.

Are there any other 55 year bonuses I might be missing?

 

[HI Bill]

IRS rule of 55! RE this year, or up until 59.5, and 401(k) withdrawals won’t get hit with the 10% early withdrawal penalty!

 

[USGrant1962]

They started when you were 50, but don't miss out on catch up contributions to IRA/401(k)/403(b).

 

[odanny]

IRS rule of 55! RE this year, or up until 59.5, and 401(k) withdrawals won’t get hit with the 10% early withdrawal penalty!

Only if you separate from your employer, I believe.

 

[Out-to-Lunch]

Only if you separate from your employer, I believe.

True, but that is what the "R" in Bill's "RE" meant (that is, "retire").

 

[captain3d]

Thanks. I did 50+ catch ups but no longer have earned income for IRA etc.

Good to know I can take some out penalty free if needed

 

[Out-to-Lunch]

Thanks. I did 50+ catch ups but no longer have earned income for IRA etc.

Good to know I can take some out penalty free if needed

Wait -- when did you separate from service from the employer where you had a 401(k)-type plan? You can only access it penalty-free if you separated in the year that you turned 55 (or later).

 

[mountainsoft]

Are there any other 55 year bonuses I might be missing?

Senior discounts?

https://www.frugalforless.com/discounts-you-can-get-at-age-55/

 

[NewEnglander]

IRS rule of 55! RE this year, or up until 59.5, and 401(k) withdrawals won’t get hit with the 10% early withdrawal penalty!

Only if your company's 401K allows rule of 55. In our case neither my company or my DW's allowed it. Get a copy of your summary plan description from your HR office to see if it does.

 

[captain3d]

All my previous 401ks are in roll over these days

 

[rodi]

HSAs can also have another $1000/year if you are over 55. (Assuming you have a HDHP with HSA).

Just to clarify on the 401k thing, even though it doesn't apply to the OP... Your 401k plan must allow withdrawals starting at 55 - and not all do. The IRS allows 401k plans to allow this - but doesn't require it. So check your plan or confirm with HR if you are planning on pulling from your 401k at age 55.

 

[retired1]

Congratulations !! Now you can walk into a 55+ communities with more confidence

 

[Doingitwrong]

Financial changes? Nope, mostly physical.

 

[captain3d]

55+ communities of course did not even think of that one