The Importance of Age 69 1/2 in Retirement Planning

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.