Why are key age minimums 59?

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Why is retirement account last contribution key age minimum 59? How do you set earlier age at which you stop contributing to retirement accounts? Does the key age settings effect results if you delete contributions above minimium age limit to match when you retire and stop contributing to accounts?

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dan royer's picture

The last contribution age is relative to the current year and your age. So if it says 59, it must be that you are 59 this year. You can set the key age for last contribution at age 60 or 62 and still not contribute at age 59 or beyond if you want.

Dan,
I am not getting the response you indicate. Current year is 2014, and our ages show up as 52. See screen shot included in this response. I am using 2.26.8 and it was rolled over from 2013. Did not have this issue with earlier version. Please advise.
Wayne

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dan royer's picture

OK, Well, that may have been the way the settings worked in 2.26.8 (we are currently at 2.28.1 so you should update to get the tax tables correct and any other fixes that might have been applied since then). But there is no harm in having the last age of contribution set to 59 when in fact your last age is really, say, 57 or 53. Just don't show contributions after ages 53 or 57 or whenever you actually stop contributing. Withdrawals before age 59 incur a penalty and so it could be that prior to the version I'm using, we didn't allow those withdrawals since the age of first withdrawal can't be set to come before the age of last contribution. In the current version, you could set the age last withdrawal at age 55 and the first withdrawal at age 56, but you'd have to account for the penalty as a special expenditure.

So in your version, we didn't allow that. That's my best understanding without chatting with the programmer.

My point, I suppose, is that it doesn't make any difference. Just leave the age of last contribution at 59 but make sure your contributions you enter are accurate and if there are no contributions between your current age of 52 and 59, don't enter any. It's fine that way.

But I would spend the $50 to update to 2.28.1

Even if apparent functionality doesn't change much from version to version, tax laws and rates do, as well as other stuff hidden under the cover. That justifies the expense to me, assuming you have the means to pay for it.

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