7 Crucial Retirement Decisions To Make by Age, According To Rachel Cruze

A 2025 Charles Schwab survey recovered that the mean American idiosyncratic had a status savings people of $1.6 million, which they expected to screen them for 22 years.

However, reaching your status savings extremity requires making important decisions astir backing your account, and you’ll request to retreat those funds wisely aboriginal to debar penalties. Plus, determination are considerations for wellness security and Social Security benefits.

In a caller YouTube video, wealth adept Rachel Cruze addressed these communal concerns. Here are 7 important status decisions that you’ll request to marque astatine antithetic ages.

Cruze said, “If this relationship has been unfastened for 15 years oregon more, you tin rotation up to $35,000 from a 529 into a Roth IRA, which is perfectly incredible.”

While Cruze suggested considering this erstwhile you’re older than 21, the close property volition beryllium connected however agelong agone your parents opened the account. As a bonus, you tin marque penalty-free 529 program withdrawals up to the magnitude of tax-free scholarships received, but income taxes use to earnings.

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Once you scope property 50, you go eligible to lend much wealth to your 401(k), IRA and different qualifying status accounts. Taking vantage of this perk is particularly adjuvant if you’re disconnected way for your savings extremity oregon you present gain a higher wage that tin accommodate bigger contributions.

According to the IRS, the IRA catch-up publication magnitude is $1,100, raising the $7,500 basal bounds for 2026. Meanwhile, 401(k) accounts person a basal bounds of $24,500 successful 2026, with an other $11,250 allowed betwixt ages 60 and 63 and $8,000 for different ages 50 and up.

Cruze noted the minimum property of 59 ½ for withdrawing funds from a tax-advantaged status relationship without owing the 10% aboriginal withdrawal penalty. However, you whitethorn inactive beryllium regular income taxes connected that money, specified arsenic if you person a accepted 401(k) oregon IRA.

Also, the IRS has exemptions to the 10% taxation punishment for circumstantial circumstances that alteration by the relationship type. For example, you tin instrumentality wealth from your IRA for qualified assemblage expenses, and you tin pat into a 401(k) oregon IRA if you go wholly and permanently disabled.

You tin assertion your Social Security arsenic aboriginal arsenic property 62, but waiting until property 70 gives you the highest payment amount. This Social Security calculator tin springiness you an thought of however overmuch you mightiness get astatine antithetic ages based connected your net history.