Key Ages in U.S. Retirement Planning: 50, 60, 62, 65, 67, 70, 73

Many retirement decisions in the U.S. are tied to age. Missing some of these ages only costs you an opportunity; missing others can mean a penalty for life. Below are the key ages in order, using 2026 rules.

1. Key Ages and What to Watch For

1. Age 50: Catch-up contributions begin

Once you turn 50, the IRS lets you put extra money into your 401(k) and IRA on top of the normal annual limit. This is called a catch-up contribution. For 2026, the 401(k) employee deferral limit is $24,500, and people 50 and older can add another $8,000. The IRA limit is $7,500, with a $1,100 catch-up; starting in 2026, the IRA catch-up is indexed for inflation. (IRS)

Starting in 2026, if your prior-year FICA wages from that employer (the wages subject to Social Security and Medicare tax) exceeded $150,000, your 401(k) catch-up contributions must be made as Roth, meaning with after-tax dollars. (IRS)

2. Ages 60–63: A higher 401(k) catch-up

Beginning in 2025, people who turn 60, 61, 62, or 63 during the year have a 401(k) catch-up limit of $11,250 (unchanged for 2026). It replaces the regular $8,000 catch-up rather than adding to it, so the maximum employee deferral for this age group in 2026 is $35,750. At 64, the catch-up returns to the regular amount.

3. Age 65: Enrolling in Medicare

Medicare is the federal health insurance program for people 65 and older. If you have been receiving Social Security for at least four months before turning 65, you are usually enrolled in Parts A and B automatically; otherwise, you need to sign up yourself.

Your first chance to enroll is the Initial Enrollment Period (IEP), a seven-month window covering the three months before your birthday month, the birthday month itself, and the three months after. If you sign up before your birthday month, coverage starts in your birthday month; if you sign up during or after it, coverage starts the following month.

If you miss the IEP and don’t have current employer group coverage that qualifies you for a Special Enrollment Period, you have to wait for the General Enrollment Period (GEP), January 1 through March 31 each year. Since 2023, GEP coverage starts the month after you enroll. Late enrollment carries a lifetime penalty: the Part B premium goes up 10% for each full 12 months you were late. (Medicare.gov, penalties)

4. Ages 62, 67, and 70: Three ways to claim Social Security

Full Retirement Age (FRA) is the age at which Social Security considers you eligible for your “full” benefit; for anyone born in 1960 or later, it is 67. Claiming before FRA reduces your benefit, and claiming later increases it.

• Claim early at 62: Your monthly benefit is permanently reduced by about 30%. If your benefit at 67 would be $2,000, starting at 62 gives you about $1,400.
• Claim at FRA, 67: In this example, $2,000 a month.
• Delay to 70: Each year you wait past FRA adds 8%, up to age 70, for a total of 24%. In this example, about $2,480 a month.

(SSA early retirement, SSA delayed retirement)

5. Age 70: Social Security maxes out; age 73 or 75: RMDs begin

At 70, your monthly Social Security benefit reaches its maximum, and waiting beyond 70 adds nothing. If your health is fair, your life expectancy is shorter, or you have no other money to live on in these years, claiming earlier may make more sense. If the higher-earning spouse is in good health, delaying also raises the survivor benefit the other spouse may receive later.

At 73 or 75, RMDs begin. Once you reach a set age, the IRS requires you to withdraw at least a minimum amount each year from pre-tax accounts such as traditional IRAs and traditional 401(k)s. This is the Required Minimum Distribution (RMD), and the withdrawals are taxed as ordinary income. RMDs start at 73 for people born 1951–1959 and at 75 for people born in 1960 or later. Roth IRAs and Roth 401(k) balances are not subject to RMDs during the owner’s lifetime. (IRS RMD FAQs)

A Roth conversion (moving money from a traditional account into a Roth IRA) before RMDs begin does not eliminate RMDs, but it reduces the pre-tax balance they are based on. More on this below.

2. Key Topics in Detail

1. 401(k) and IRA: The two main retirement accounts

• 401(k): An employer-sponsored plan funded from your paycheck, often with an employer match. Traditional 401(k) contributions go in pre-tax and are taxed when withdrawn; Roth 401(k) contributions go in after-tax and come out tax-free once you meet the requirements.
• IRA: An individual retirement account. Whether a traditional IRA contribution is deductible depends on your income and whether you or your spouse is covered by a workplace plan. Roth IRA contributions are after-tax, and withdrawals are tax-free after age 59½ once the account has been open five years; direct Roth IRA contributions are subject to income limits.

2. Roth conversion: Paying tax now instead of later

• What it is: The converted amount is taxed as ordinary income in the year of the conversion; afterward, growth inside the Roth and qualified withdrawals are tax-free.
• When it’s worth doing: A common window is the first few years of retirement, after paychecks stop but before Social Security and RMDs begin. If your current tax rate is clearly lower than the rate you expect later, or your pre-tax accounts are large enough that RMDs would push you into a higher bracket, it is worth considering. If a conversion would push you into a high bracket this year, raise your Medicare premiums two years later (the income-based surcharge known as IRMAA), or the tax would have to be paid out of the retirement account itself, run the numbers first; spreading smaller conversions over several years is usually the steadier approach.

3. Social Security: A core source of retirement income

• When to claim: The dollar differences among the three choices are shown above; in practice, the decision should look at both spouses and the survivor benefit together.
• How it’s calculated: Your benefit depends on your highest 35 years of earnings (indexed for wage growth) and the age you start claiming; if you have fewer than 35 years, the missing years count as zero. You can check your estimates by logging in to my Social Security at ssa.gov.

4. Medicare: The foundation of health coverage

• Part A (hospital insurance): Covers inpatient hospital stays, skilled nursing facility care, and more; it is usually premium-free if you or your spouse paid Medicare taxes for 10 years.
• Part B (medical insurance): Covers doctor visits, outpatient care, and more, with a monthly premium that is higher for higher-income people.
• Part C (Medicare Advantage): Offered by private insurers, it combines Parts A and B and often includes Part D. Premiums are usually lower, but you generally need to stay within a provider network. The alternative is Original Medicare plus a Medigap supplement, which costs more in premiums but doesn’t restrict you to a network. Which fits better depends on whether your doctors are in network, whether you spend time out of state, and how much out-of-pocket cost you can absorb.
• Part D (prescription drug coverage): Covers prescription drugs. Enrolling late without other creditable drug coverage also triggers a lifetime penalty.

3. Ages at a Glance and How to Decide

Age	What happens (2026 rules)
50	401(k) catch-up of $8,000; IRA catch-up of $1,100
60–63	401(k) catch-up rises to $11,250 (replaces the regular catch-up)
62	Earliest Social Security claiming age; about 30% reduction
65	Medicare Initial Enrollment Period
67	FRA for those born 1960 or later
70	Delayed Social Security credits stop; 24% more than at 67
73	RMDs begin for those born 1951–1959
75	RMDs begin for those born 1960 or later

How to decide: If your cash flow has room after 50, max out catch-up contributions first, then decide between pre-tax and Roth (if your prior-year FICA wages exceeded $150,000, catch-ups must go to Roth). If you have enough savings to live on between leaving work and age 70, delaying Social Security while using those low-tax years for Roth conversions is usually worth a careful calculation; if Social Security is your only income during that stretch, claiming earlier is a reasonable choice. Unless you have qualifying current employer group coverage, enroll in Medicare on time at 65. These decisions affect one another, so it’s best to plan them together around age 60. If you’d like to run the numbers for your family, MMG is happy to help.