Retirement Milestones by Age

You can contribute an extra $7,500/year to your 401(k) and $1,000/year to your IRA above the standard limits.

If you leave your job at 55 or later, you can withdraw from that employer's 401(k) penalty-free. Does not apply to IRAs or old 401(k)s.

You can withdraw from any 401(k), IRA, or other tax-advantaged retirement account without the 10% early withdrawal penalty.

Starting 2025, workers aged 60–63 can contribute up to $11,250 extra to a 401(k) — the highest catch-up amount available.

You can claim Social Security as early as 62, but your benefit is permanently reduced by ~30% compared to waiting until full retirement age (67).

You qualify for Medicare. Initial enrollment starts 3 months before your 65th birthday. Late enrollment penalties apply if you delay without qualifying coverage.

After 65, you can withdraw HSA funds for non-medical expenses without the 20% penalty (ordinary income tax still applies). Medical withdrawals remain tax-free.

For anyone born 1960 or later, this is when you receive 100% of your Social Security benefit. No reduction for claiming at this age.

Delaying Social Security past FRA earns 8% per year in delayed retirement credits. At 70, your benefit is ~77% higher than at 62 and ~24% higher than at 67.

You must begin taking RMDs from Traditional IRAs and 401(k)s. The amount is based on your account balance divided by your IRS life expectancy factor. 25% penalty for missing.

Starting 2024, Roth 401(k)s are no longer subject to RMDs (SECURE 2.0). Roth IRAs have never required RMDs during your lifetime.