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The Importance of Age 69 1/2 in Retirement Planning

Last update on: Jun 18 2020

Most people in retirement planning learn that age 70 1/2 is important. Here’ an article arguing that the year before is more of a benchmark. You have to start planning for the following years’ RMD, and it also means you’re approaching other key IRA milestones.

Age 69 1/2 is a big deal, a major year in the “life planning calendar.” In the year you reach age 69 1/2:

  • If you’re still working, this is your final chance to make a traditional IRA regular contribution.
  • It’s also your final year to roll your traditional IRA into your workplace plan (if you are still working) to totally avoid taking any required minimum distributions from the IRA.
  • Now’s the time to consider other ways to reduce future RMDs, too, such as Roth conversions.
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