Stressors show up in our lives in all shapes and sizes, and while we often associate stress with major life events or overwhelming situations, there are certain type of stressors that are often overlooked.  Microstressors are the small and seemingly insignificant triggers that accumulate over time and slowly take a toll on our well-being. In fact, 91% of employees say that unmanageable and untreated stress negatively impacts the quality of their work.

As the last of the Baby Boomer generation approaches the minimum age to receive Social Security benefits, here are some points to understand before deciding to begin benefits.

How do I get the most money from the system?

While you can begin taking Social Security at age 62, each year you delay your decision will result in an annual benefit about 8% higher each year until age 70.  Many retirees tend to hold off until the age of 70, when they receive the maximum benefit amount.

While few people like the stock market declines we are experiencing.  There are some bright spots and opportunities.  Should you consider converting a traditional IRA to a Roth during a down market?

Traditional IRAs are pre-tax dollars.  While the money grows in the Traditional IRA tax-free; at distribution, you are taxed at your ordinary income tax rates.  A Roth IRA invests post-tax dollars.  Assuming you meet certain criteria, all Roth IRA distributions are income tax free.

A recent TIAA Institute survey reported that 50% of Americans were unable to answer financial literacy questions properly.  While I presume you are not in that group if you are reading this article, here are some highlights to share with your friends.

Do you have an employer 401(k) plan or other retirement plan assets? Should you consolidate accounts? Here are some ideas and recommendations to consider.

Benefits of Company 401(k) plans

• If you leave your money in a company 401(k) plan rather than rolling it into an IRA) is no required minimum distributions (RMDs) if the account owner is still working.  Generally, account holders must start withdrawing from their retirement accounts at age 72. The RMDs at age 72 apply only to traditional IRA accounts and not to Roth IRA accounts.
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The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020.

For those seeking access to their retirement funds, these include special provisions for coronavirus-related distributions and loans. For those seeking to preserve their retirement funds, certain required minimum distributions from retirement funds have been suspended.

Coronavirus-related distributions

A 10% penalty tax generally applies to distributions from an employer retirement plan or individual retirement account (IRA) before age 59½ unless an exception applies. Due to the coronavirus pandemic, the penalty tax will not apply to up to $100,000 of coronavirus-related distributions to an individual during 2020. Additionally, income resulting from a coronavirus-related distribution is spread over a three-year period for tax purposes unless an individual elects otherwise. Coronavirus-related distributions can also be paid back to an eligible retirement plan within three years of the day after the distribution was received.

Fidelity Investments, the nation’s largest retirement plan provider, recently released some statistics related to its customers that save for retirement. The number of Fidelity 401(k) accounts with a balance of $1 million or more recently hit a record of 168,000, up 41% from last year.

To give you an idea of how your retirement savings stack up against your peers, check out the average 401(k) balances in Fidelity accounts, as of the second quarter of 2018, broken down by age.

Many Americans work with dreams of a comfortable retirement. We pay 6.2% of our wages into the Social Security system and our employers match another 6.2%. So when do we start reaping our rewards?

You can start receiving retirement benefits on your 62nd birthday. However, every year you delay your Social Security benefit payment, you will get an 8% increase in benefits up until age 70.

There are some questions you need to ask yourself and your financial and tax advisor. There are good arguments that support early receipt and good arguments that support waiting until age 70.

The Social Security Administration (SSA) announced last week that the maximum amount of wages in subject to the 6.2% Social Security tax will rise from $127,200 in 2017 to $128,700 in 2018. The SSA also announced that Social Security beneficiaries will get a 2% increase in benefits in 2018. The average retiree will receive an increase of $27 a month.

If you take money out of a retirement account (IRA, 401(k), 403(b), etc.) before reaching the age of 59½, you typically must pay income taxes on the withdrawal plus an additional 10% early withdrawal tax unless an exception applies.

If they apply, these exceptions may save you the 10% penalty if you have to tap into your retirement accounts early.

1. Death or Disability- If someone in your family becomes permanently disabled, your retirement may be the last place that you want to draw funds.  There are options to get money out of your IRA penalty free should disability or death happen in your family.