59 1/2 today

[Stormy Kromer]

Today is a day I've been planning around since I took out my first IRA in 1987. I am 59 and a half. Kind of surreal that I can start withdrawing from my qualified accounts.

I always thought I'd let the traditional IRA accumulate until I had to take RMD's, but after reviewing my estate plan I realized that could leave a potential tax bomb to my heirs. Instead I am going to start withdrawing IRA funds for living expense and letting other accounts such as the Roth IRA's and non-qualified investments to grow. They would be more tax efficient to die with due to the stepped up basis. That's a whole different thread....

Anyway, I've reached the age.

 

[audreyh1]

Congrats!

DH will be eagerly awaiting reaching 70 1/2 this year so he can start doing QCDs!

BTW we have a 2025 Milestones thread: Share Your 2025 Milestones

 

[OnFire]

Congrats! That's a great milestone.

 

[flyingaway]

Next milestone might be 62, when one could start social security, if needed.

 

[Dtail]

Congrats. We have been taking some funds from pre tax accounts each year.

 

[GrayHare]

Congrats. Who knew a half year of age would be important after age 3.5?

 

[Koolau]

I still recall wanting to turn 16, then 18, then 21. I guess the next age I wanted to be was, as you suggest, 59 1/2. It's very liberating to be able to get into your qualified money and start spending it down before the tax bomb explodes with RMDs.

Congratulations on achieving such a critical age!

 

[audreyh1]

Congrats. Who knew a half year of age would be important after age 3.5?

Oh my youngest nephew proudly tells folks that he’s 6 and a half!

 

[TickTock]

Congrats on both reaching 59-1/2 and the tax planning!

 

[NomDeER]

I just turned 59.5 as well. After years of building up and protecting retirement funds, it's a weird feeling to be able to withdraw from them penalty free. Like you, I've made the decision to start drawing down my traditional IRA.

For my own tax purposes, though, I'm realizing that, in the short term, I probably am best off for now converting funds from a traditional IRA to a Roth IRA rather than just withdrawing. I can then withdraw any funds from the Roth IRA as needed. In the meantime, the funds will be growing tax free. Due to unique circumstances, I'll probably end up withdrawing the Roth IRA funds in the next five to ten years.

 

[jim584672]

Whoo hoo... Congrats!

 

[wrigley]

I still recall wanting to turn 16, then 18, then 21. I guess the next age I wanted to be was, as you suggest, 59 1/2. It's very liberating to be able to get into your qualified money and start spending it down before the tax bomb explodes with RMDs.

Congratulations on achieving such a critical age!

And now you want to be 16, 18, or 21 again. (but know what you know now <wink>)

 

[Phroig]

I just turned 59.5 as well.

Me too!

 

[SecondCor521]

I reached 55.5 recently and it is a weird feeling watching my "Roth conversion ladder" spreadsheet shrink with each passing year. When I retired 9 (!) years ago, I thought I would need my Roth ladder but somehow I haven't touched a penny of it.

Occasionally I wonder when I'm going to start being able to get all those senior discounts, but I don't really need them so it's more idle curiosity. I've seen lists but haven't done the work of going through them and seeing which apply to me.

 

[HI Bill]

I'm also eagerly awaiting 59.5, in just 5 months...I'm using the Rule of 55 for my 401(k), but the magic age will open up the IRA investments to withdrawals and I'll be escaping the Merrill Lynch fees when I transfer the 401(k) to a Vanguard IRA. I thought for many years I'd have to use the Rule 72(t) to take substantially equal periodic payments from retirement accounts, but my brokerage accounts provided enough that I didn't need to!