6 Important Retirement Dates You Should Know

We think of retirement as a single milestone -- the day you finally exit the workforce for good. But when it comes to retirement benefits, there are actually six major milestones set by the federal government. You're free to retire anytime, but understanding these important dates can help you choose the smartest time for you to retire financially.

Retirement distributions taken before 59 and a half are usually subject to a 10% early withdrawal penalty unless you meet certain criteria, like paying for a large medical bill, purchasing your first home, or taking Substantially Equal Periodic Payments (SEPPs). If you plan to retire before 59 and a half and want to avoid a 10% penalty, you'll have to rely on money in your savings account or taxable brokerage account until your retirement distributions are no longer subject to penalties.

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Source Fool.com