We all go through milestones as we age, but how many of us have actually taken the time to reflect upon their age-related tax milestones? Well, it’s high time you did. If you have young children, you may need to consider the Kiddie Tax and Custodial Account rules. If you are saving and planning for your own retirement, you need to be mindful of when extra retirement account contributions are allowed and when you may begin taking retirement account withdrawals penalty-free. Finally, as you near retirement, you should be cognizant of when you may begin receiving social security benefits and whether it’s best to wait until you may receive full or even enhanced social security benefits. Of course, these are simply general tax milestones that should be considered. If you have questions regarding your particular financial situation, it is best to seek the advice of a tax professional.
To help you reflect on your own tax milestones, visit this primer.