Building a nest egg is hard enough, but when it comes time to withdraw money for retirement, cracking that egg to let the insides trickle out will take just as much effort. In the United States citizens have Social Security and Medicare to use, but for the wise prepare for retirement using the options available.

Having some money going into retirement is a good goal but it might not be enough. In these days of ever increasing inflation, which include the fast rising medical expenses, a future retiree will need all the extra funds they can obtain. Just holding an IRA, 401K, Life Insurance, Stocks, or good old cash is only the beginning. Crossing into the days of leisure that we all hope for as we age is not like crossing a finish line as far as you money goes.

There are several steps in getting ready for retirement. Take a look at your wants and needs and what you have saved for them. Then you need to look at what government programs like Social Security and Medicare will be available and what you will do with them. Then keeping in mind how the IRS treats what you have saved, you must make a plan of a withdrawing your nest egg.

You must ask yourself the when, and what of your dream retirement. These dates are important and any planning done around retirement must take these into consideration. All the dates are subject to change and should be checked by following the links as the bottom of the page.

Social Security: The full retirement age for Social Security has a moving date for those born before 1960 for those born after 1960 it becomes when you turn 67 years old. Since the date for partial retirement is still 62 years old. For those born before 1960, they need to check the Social Security’s Administration's website listed at the bottom of this page.http://www.socialsecurity.gov/retire2/agereduction.htm

Medicare: Eligibility for Medicare is age 65 with a few exceptions for those under 65. Check the links at the bottom to see the exceptions for those interested in receiving befits earlier.http://www.medicare.gov/MedicareEligibility/home.asp?dest=NAV%7CHome%7CGeneralEnrollment&version=default&browser=IE%7C7%7CWinXP&language=English

IRA:The first date you can start to draw on an IRA is at 59 ½ years old without getting hit with 10% penalty. An IRA can be contributed to up to the age of 70 ½. The age of 70 ½ is also important that you begin minimum withdraws or you are also subject to a tax. http://www.irs.gov/taxtopics/tc451.html

401K:The age of 59 ½ is when a 401k can begin to be withdrawn without the 10% penalty levied upon the beneficiary by the IRS. http://www.irs.gov/taxtopics/tc424.html<ref>

To know what you are going to need you must know what you want and is it possible with what you have. Any age is a good age to look at what you have but as you draw closer to the golden years it should be done with urgency. There are many considerations including personal health and desire, but there are three big ones to consider before withdrawing money.

1. Partial Retirement: Do you want to just cut back on your work once you reach the magic age of 59 ½ when you can start to draw on an IRA or 401K plan or even 62 when you can start to get limited Social Security. One thing to considerer before you set sail into the days after you can start to draw on your money is that you can continue to contribute into an IRA and 401k until you reach 70 ½ years so you can build up a nice nest egg.
2. Funds for Nursing Care: As much as most people hate to think about it there might come a time when you consider Nursing Home Care cost in your planning. It never hurts to have money ready for this possibility when you are wondering about your latter years.
3. "'Full Retirement:"' You have had enough and you are done and ready to jump into the days you have worked so hard for. If this is where you want to be then you must start a plan on how to withdraw your money so that you will have enough to enjoy all the pleasures you have been thinking about.

The last step will talk about how to withdraw your funds.

You are ready to dust off the money you have squirreled away for so long. You and every other United States worker who has paid taxes will at least receive Social Security and Medicare. At one time they might have been enough to enjoy the life of leisure, but today they are hardly enough to survive. Having more can help to both enjoy life and afford Health care not covered by Medicare and at some point even Nursing Care.

How much to take out is an extremely important decision that should not be taken lightly. Below is the list of retirement program and plans and what you must do to receive money from each without tax penalties.

Medicare:Health cost are one of the greatest expenses for the elderly and Medicare plans and Medicare prescription plans are available to help but the retiree must look into what suits them best in both the pocketbook and security factor.http://www.medicare.gov/default.asp

Social Security:You paid in for Social Security, and no matter if you are a millionaire, you are eligible to receive the money promised to you. http://www.socialsecurity.gov/

IRA: The benefit of an IRA is the money can be withdrawn over a period of time and the procedure of [how to withdraw money from an IRA] is straight forward.

401k: These compensation plans built for retirement must be distributed under accordance with the IRS’s Topic 412 for lump sum distribution and Topic 413 for rollover. http://www.irs.gov/taxtopics/tc424.html

Pension Plans: These are great for those that still have them when they retire but one must consider what can happen to them before counting on them forever. The company or Union where the plan was set up will help with withdrawals.

Useful Links: Social Security: Eligibility Dates Medicare:Medicare IRS: IRA Eligibility Dates 401K Eligibility Dates 401k Rules

The content in this page is not a substitute for professional financial advice. Please contact a finance professional before using the information presented here.