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50s timeline
By
Bankrate.com
For some of us, reaching the big
5-0 is traumatic. But, it's really not all that bad. Think
of the benefits -- you can contribute more to your 401(k),
may be eligible to collect Social Security and some companies
will even offer you a discount for services. Wait, there's
more!
Slice of life: 50,
55, 59
½
Claim those senior discounts
You're now eligible to join AARP,
a national advocacy group for older Americans and other organizations
that routinely offer discounts to seniors. Airlines, auto
clubs, retailers, banks, drug stores, supermarkets and restaurants
are just some of the places where you can save money.
Links:
Saving
after retirement, Finding
free tax help, Trim
the fat off your finances!
You may be eligible
for Social Security
A disabled widow or widower can get benefits at age 50 and
over. The benefits may be reduced if receiving a pension from
a job where Social Security taxes were not withheld.
Links:
Some
Social Security benefits may be taxable, Make
sure your name and Social Security number match
IRA contribution limits
increase
You can begin making larger salary reduction contributions
to your individual retirement account. For 2002, your contribution
limit is either $3,500 or your taxable compensation -- that
is, money earned -- whichever is the smaller. The spousal
IRA limits also increase. For 2002, if one spouse is 50 years
or older, the limit is $6,500. If both spouses are 50 years
or older, the limit is $7,000.
Links:
The
ABCs of IRAs, Is
a Roth IRA the right account for you?, Roth
IRA: tax rules on who can open this retirement account,
Traditional
IRAs make tax sense for some filers, Putting
real estate in an IRA, Savings
bonds in an IRA
 Retire
early
You can take early distributions from a qualified retirement
plan other than an IRA if you leave the company when you turn
age 55 or older.
Links:
Penalty-free
early withdrawals, Retiring
early on a 401(k)/IRA without penalty
 Take
out retirement money without penalty
You can receive distributions from your traditional or Roth
IRA without having to pay the additional 10 percent tax.
Links:
IRS:
Individual Retirement Accounts, More
flexible withdrawal rules allow for easier early retirement
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