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Benefit From Your Birthdays The road to and through retirement is dotted with time-sensitive financial planning milestones vSubmitted by First Dakota National Bank Not all birthdays are about a driver’s license, getting to vote or toasting with a glass of wine. Some are important to your comfort in retirement, too. No matter who you are, the years leading up to and during retirement contain a number of key financial planning opportunities worth capitalizing on. You and your spouse may hit these dates at different times, so be sure to coordinate before making any decisions. 50 This birthday brings catch-up provision eligibility in your IRA and certain employer-sponsored plans. Annual traditional or Roth IRA contribution limits increase from $5,500 to $6,500 for 2018. 401(k) and 403(b) salary deferral limits increase from $18,500 to $24,500. Plus, SIMPLE IRA participants can defer an additional $3,000 of salary. 55now available to you. Health Savings Account (HSA)from 401(k) Penalty-free, separation-from-service withdrawals s are participants are also allowed a “catch-up” contribution: For single individuals, annual contribution limits increase from $3,450 to $4,450. For families, the limit increases from $6,900 to $7,900. 65 Medicare eligibility begins. Those nottocollecting Social Security should enroll in Part A three months prior their 65th birthday to avoid a gap in health insurance coverage. Unless you’re covered by an employer-sponsored health plan, enroll in Medicare Part B to avoid future penalties. 66-67 Full retirement age full Social Security (depending on for birth year) provides eligibility for retire¬ment benefits. Social Security recommends applying for benefits three months prior to the month you would like them to start. 70wait any longer to receive them. are provided at this age. Maximum Social Security benefits Don’t 59 1/210% tax penaltyfromnow possible. Additionally, without 70 1/2 The year you turn 70½ is referred to as your “first Withdrawals most retirement accounts an additional are those distribution year” and required minimum distributions (RMDs) from who are still working and looking to diversify by rolling funds from their qualified plan to an IRA may now be able to do so. 60 Those who have lost assumingare eligible to collect Socialand the a spouse Security survivor’s benefits, the deceased was eligible survivor did not remarry. 62 Socialyour advisor to bestbegins, buthousehold benefits. Security eligibility with reduced benefits. Confer with maximize qualified accounts must begin. The IRS allows the first RMD to be postponed until April 1 of the year fol¬lowing the “first distribution year”; however, subsequent RMDs are due by year-end of each year. Kathy Greeneway is a Certified Financial Planner® with Raymond James Financial Services, Inc. located at First Dakota National Bank, 225 Cedar St., Yankton, SD. Securities are offered through Raymond James Financial Services, Inc., (Member FINRA/SIPC), and are not insured by the FDIC, any other government agency or any other bank insurance, are not deposits or obligations of the bank, not guaranteed by First Dakota National Bank, and are subject to risks, including the possible loss of principal. First Dakota National Bank and First Dakota Brokerage Services are independent of Raymond James Financial Services. n HERVOICEvMAY/JUNE 2018v25

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