Upcoming Important Dates and Milestones
The end of one year and the beginning of another marks the time to review some transitionary dates and milestones. We have summarized a few key dates and milestones below that may be worth reviewing for the upcoming year.
Important dates in the next 70 days:
December 31: The deadline for satisfying RMDs for the current year, the end of the tax year, and the last day to complete any gifting strategies before rolling into the new year’s compliance.
January 1st: Beginning general enrollment period for Medicare Parts A and B begins on January 1st and ends on March 31st.
January 15th: The estimated tax deadline for the fourth quarter payment of the prior year's estimated taxes. You can prevent any penalty for the last payment of the last installment if you file and pay your taxes by January 31st. However, it is more likely that you won’t have enough of your tax information, so it is best to make sure the 4th quarter estimate is made by January 15th.
February 15th: For some of the kiddos and those only working part-time, February 15th is the W-4 deadline to claim exemption from income tax withholding for the prior year to continue the exemption in the current year.
Milestones:
Newborns: Can now be named as beneficiary on 529 college plans and owners of UTMA/UGMA accounts.
13 – Children no longer eligible for the Child and Dependent Care Credit.
17 – Child no longer eligible for the Child Tax Credit.
18 – Age of majority in most states (21 in some). Age of termination of some UGMA and UMTA accounts (can be extended in certain states). Children are also no longer subject to the Kiddie Tax (unless they are full-time students up to age 24).
26 – Adult children may lose parent’s health coverage
50 – Eligible to make catch-up contributions to retirement accounts (IRA, 401k, 401b, 457). Also, the age for Social Security benefits for disabled widows/widowers.
59-1/2 – Eligible to withdraw from IRAs without a 10% early distribution penalty.
62 – Eligible to claim Social Security benefits (at a reduced rate). Eligible to qualify for a reverse mortgage.
64+9 months – Start of Initial Enrollment Period for Medicare.
65 - Eligible for Medicare at 65 with timely application. Eligible for non-medical withdrawals from HSA without penalty (non-qualified medical expense withdrawals will be taxable income, like an IRA)
66, 66+2, +4, +6, +8, +10 months – Full Social Security retirement benefits if born between 1943-54, 1955, 1956, 1957, 1958, 1959, respectively
67 – Full retirement age for Social Security, born in 1960 or later
70 – Maximum Social Security benefits is reached
70-1/2 – Eligible to make a Qualified Charitable Distribution (QCD)
73 – Required Minimum Distribution (RMD) if born before 1960
75 - Required Minimum Distribution (RMD) if born in 1960 or later
If you have any questions or would like to discuss these items, please schedule a time with Scott, Chase, Daryl, Shannon or Joel.