Individual taxpayers don’t have to begin paying federal taxes at a specific age. Obligations begin when one’s income meets the applicable tax filing or payment requirements. That said, under current rules, tax-saving opportunities begin the day a child is born. From there, most people encounter various “tax milestones” — whether becoming subject to certain responsibilities or finding new ways to save — throughout much of their lives. Let’s explore some of these and discuss how to make the most of them.

Ages 0 to 18

It’s never too early to start saving for the future in a tax-savvy manner. And now there’s a straightforward way to do it. The One Big Beautiful Bill Act (OBBBA) created a new type of tax-advantaged savings vehicle: the Section 530A account (also known as a “Trump account”). One of these can be set up for anyone with a Social Security number who’ll be under age 18 at the end of the tax year.

That means parents or other eligible individuals can establish a 530A account for a newborn and start building savings right away. Annual contributions of up to $5,000 can be made until the year the beneficiary turns age 18. Along with parents, other family members, friends and even the children themselves may contribute. An account can also accept a “qualified general contribution” funded by states and political subdivisions, the federal government, Indian tribal governments, or certain nonprofits.

Employers may contribute as well — up to $2,500 per year (adjusted for inflation after 2027) to the 530A accounts of employees or their dependents. Such contributions are generally excluded from the employee’s taxable income. The $2,500 cap applies per employee, and employer contributions count toward the $5,000 annual limit.

530A account contributions aren’t deductible, but account earnings grow tax-deferred. The account generally must be invested in exchange-traded funds or mutual funds that track the return of a qualified index and meet certain other requirements. Except for certain permitted rollovers, beneficiaries can’t withdraw funds until they turn 18. At that time, an account generally becomes subject to the rules for traditional IRAs.

Important: U.S. citizen children born between January 1, 2025, and December 31, 2028, can potentially qualify for an initial $1,000 government-funded deposit. Recent IRS guidance also provides for the automatic establishment of accounts for certain eligible children. Even if no additional contributions are ever made, the tax-deferred compounding growth on $1,000 can build a substantial balance over time.

Another thing to watch for when children are in this age range is the “kiddie tax.” It limits parents’ ability to significantly reduce their family’s taxes by transferring income-producing assets to children in lower tax brackets. The kiddie tax generally applies when certain children’s unearned income exceeds an annual threshold ($2,700 in 2026).

It generally affects children under age 19 and full-time students under age 24 — unless the students provide more than half of their own support from earned income. The child’s net unearned income above the applicable amount may be taxed at the parents’ tax rate.

Ages 19 to 49

Once you reach adulthood, many important tax considerations depend less on your age than on what’s happening in your life. This period isn’t so much a milestone as, well, a good chunk of life itself.

For example, starting a career may bring opportunities to contribute to a tax-advantaged employer-sponsored retirement plan or IRA. Higher education may make certain related tax benefits relevant. Marriage (or divorce), homeownership, parenthood or starting a business can introduce still other tax-planning considerations and savings opportunities.

Building good tax and financial habits during adulthood is especially important. Decisions you must make about retirement savings, investment accounts, employee benefits, and withholding or estimated tax payments can affect both your current tax bill and your long-term financial position. So, even though ages 19 through 49 trigger fewer major tax rules tied to a specific birthday, they still offer plenty of opportunities for thoughtful tax planning.

Proactive individuals also work with their professional advisors on estate planning. Few people are exposed to federal estate tax because the estate tax exemption is relatively high under current law ($15 million for 2026). But early planning can pay off by reducing taxes over the long run, preserving wealth for your loved ones and helping ensure your wishes are carried out if the unexpected happens.

This isn’t a one-time project; you should revisit your estate plan as your circumstances change. For example, before heading off to college, a student should execute certain legal documents, such as health care directives and powers of attorney. When a young adult enters the workforce, it may make sense to establish a will and designate beneficiaries for life insurance policies and retirement plans. Later, as you accumulate assets and wealth, you might consider more sophisticated estate planning tools, gifting strategies and ways to incorporate charitable giving into your estate plan.

Age 50

Turning 50 marks the beginning of an important life period for potential tax savings. Eligible taxpayers age 50 or older at the end of the tax year can make additional “catch-up” contributions to employer-sponsored 401(k), 403(b) or 457 plans, as well as Savings Incentive Match Plans for Employees (SIMPLEs) and IRAs.

If you didn’t contribute much when you were younger, these extra contributions may help you partially make up for lost time. But if you’ve already accumulated substantial retirement savings, catch-up contributions can lead to even more tax-advantaged growth.

Taxpayers who participate in a 401(k), 403(b) or 457 plan can make additional catch-up contributions of up to $8,000 in 2026 for a total of up to $32,500 ($24,500 regular contribution + $8,000 catch-up contribution), assuming the plan allows it.

Important: Beginning in 2026, certain higher-income taxpayers may make 401(k), 403(b) or 457 plan catch-up contributions only to Roth accounts. (You make these contributions after tax, but you can eventually take tax-free qualified withdrawals.) This requirement applies to employees whose 2025 wages from the employer sponsoring the plan exceeded $150,000. (The amount will be annually indexed for inflation.) So, if you earn more than the applicable limit and your employer’s plan doesn’t offer a Roth option, you can’t make catch-up contributions.

If your employer sponsors a SIMPLE, you can generally make additional catch-up contributions of up to $4,000 for a total contribution of up to $21,000 ($17,000 regular contribution + $4,000 catch-up contribution). And if you have a traditional or Roth IRA, you can make additional catch-up contributions of up to $1,100 for a total contribution of up to $8,600 ($7,500 regular contribution + $1,100 catch-up contribution). The deadline for making IRA catch-up contributions is April 15 of the year following the tax year, the same as for regular IRA contributions.

Age 55

Generally, a 10% early-withdrawal penalty tax applies to the taxable portion of qualified retirement plan distributions received before age 59½. But some exceptions apply.

One such exception applies to the calendar year you turn 55. At this time, you may be able to avoid the early-withdrawal penalty if you separate from service with your employer and you take distributions from that employer’s qualified retirement plan.

Also beginning the year you turn 55, if you’re eligible to contribute to a Health Savings Account (HSA), you can make annual catch-up contributions up to $1,000 on top of the normal limit (for 2026, $4,400 for self-only coverage and $8,750 for family coverage).

Age 59½

At this age, you can receive distributions from all types of tax-deferred retirement plans and accounts without incurring the 10% early-withdrawal penalty. If you take distributions before you’re 59½, the early-withdrawal penalty will apply to the taxable portion of the distribution, unless you’re eligible for an exception to the general rule.

Age 62

Celebrating this birthday means you can start receiving Social Security benefits, up to 85% of which can be subject to federal income tax. Just keep in mind that you can receive bigger payments if you wait until you’re older.

Important: If you start receiving Social Security benefits while you’re still working, your benefits will be temporarily reduced to the extent that your wages exceed an annual limit ($24,480 for 2026). Your Social Security benefits will continue to be reduced until the month you reach your full retirement age, which is 67 for anyone born in 1960 or later.

When deciding when to start claiming benefits, there’s no universal “right” or “wrong” choice. Your financial advisor can help you choose the optimal start date based on your circumstances and preferences.

Ages 60 to 63

Hitting this age range gives you another — even bigger — opportunity to take advantage of catch-up contributions. How big? Participants in 401(k), 403(b) and 457 plans can make up to $11,250 in catch-up contributions, assuming the plan allows it. Higher-income individuals should also be mindful of the aforementioned Roth catch-up rule that took effect in 2026.

SIMPLE participants may make up to $5,250 in such contributions. Traditional and Roth IRA owners remain eligible for the regular $1,100 IRA catch-up contribution.

Be aware that you’re no longer eligible for the higher catch-up contribution the year you turn age 64 — even if you were 63 for most of the year. It’s your age on December 31 that counts.

Age 65

The OBBBA may include a special birthday present for you when you reach this milestone. For 2025 through 2028, the law created a temporary deduction of up to $6,000 for taxpayers age 65 or older. The deduction begins to phase out when modified adjusted gross income (MAGI) exceeds $75,000 ($150,000 for married couples filing jointly). It phases out completely when MAGI reaches $175,000 ($250,000 for joint filers).

Another important age-65 milestone is that you generally become eligible for Medicare health insurance coverage and Medicare prescription drug coverage. Many taxpayers don’t realize that premiums for both types of coverage depend on your MAGI as reported on Form 1040 from two years earlier. Higher MAGI can result in higher premiums.

In addition, starting at this age, you can withdraw funds from an HSA without owing the 20% federal income tax penalty that generally applies to HSA withdrawals not used for qualified medical expenses. However, such withdrawals are included in your taxable income. You may still withdraw funds tax-free for qualified medical expenses not paid for by insurance or Medicare. But you can’t contribute to an HSA once you’re enrolled in Medicare.

Age 67

If you were born in 1960 or later, age 67 is considered your full retirement age for Social Security purposes. If you start taking benefits at this time, you’ll receive the full calculated benefit — though if you can hold out a little longer, you’ll receive even more. Up to 85% of any amount received may be subject to federal income tax.

Age 70

If you wait until this age to start taking Social Security benefits, you’ll receive the largest possible payments. But up to 85% of the benefits will remain subject to federal income tax.

Age 70½

Are you charitably inclined — or might you be later in life? If so, at this age, you may make direct contributions from an IRA to qualified charitable organizations, up to an annual limit ($111,000 in 2026). To qualify, the IRA trustee must transfer the funds directly to an eligible charity. Donor-advised funds and supporting organizations aren’t eligible recipients.

Note that the age for these qualified charitable distributions (QCDs) hasn’t changed, even though the age after which required minimum distributions (RMDs) generally must begin is now higher. (See “Close-Up on the RMD Rules” below.)

To be clear, you can’t claim a charitable deduction for QCDs. But the amounts aren’t included in your taxable income and can satisfy your RMD. A QCD might make sense if you won’t benefit from the regular charitable deduction or you face AGI-based limits.

Age 73

If you turn 73 between 2023 and 2032, you generally must begin taking RMDs from any traditional IRAs you own, as well as any defined contribution plans, such as 401(k)s, 403(b)s, 457s or SIMPLEs. (Roth accounts aren’t subject to the RMD rules.)

For example, if you turn age 73 in 2026, you must take your first RMD (for 2026) by April 1, 2027. After you take your first RMD, you must take an RMD by December 31 each year (including a second RMD in 2027 if you don’t take your first RMD until 2027).

Age 75

In 2033, the starting age for RMDs is scheduled to increase to 75. This higher age generally applies to individuals born in 1960 or later. Again, you must continue taking RMDs for each subsequent tax year.

A Lifelong Process

As you can see, the federal tax code creates different opportunities, obligations and planning considerations as you move from one stage of life to the next. In other words, tax planning is a lifelong process. Your tax advisor can help you anticipate the milestones ahead and determine how they fit into your broader strategy for financial security and success.

Close-Up on the RMD Rules

Generally, you must begin taking RMDs annually from your traditional IRAs and defined contribution plans (but not Roth accounts) once you reach a specified age. For decades, the required beginning date for qualified plan and IRA participants was April 1 of the year following the year in which you turned age 70½. However, under the SECURE Act and SECURE 2.0, the age at which these rules kick in increased to 72 starting in 2020 and 73 starting in 2023. It’s scheduled to increase to 75 in 2033.

In simpler terms, individuals born from 1951 through 1959 generally must begin taking RMDs at age 73. However, those born in 1960 or later can generally delay RMDs until age 75. If you were born before 1953, you were subject to the RMD rules in 2025 (or earlier) and should already be taking RMDs annually.

However, if you’re still working after reaching the generally applicable RMD age and you don’t own more than 5% of your employer, you can postpone taking RMDs from your employer’s plan until after you retire.

Failure to comply with the RMD rules generally triggers a 25% penalty on the amount you should have withdrawn. If you correct the failure in a “timely” manner, however, the penalty drops to 10%.

Traditional IRA owners who are subject to the RMD rules can make charitable donations out of their IRAs via a QCD. (See “Age 70½” in the main article above.) Doing so is tax-free and fulfills all or part of your RMD obligation — all while giving to charity.

Important: To cover all or part of your RMD obligation with a tax-free QCD, you must take the QCD first. You can’t retroactively “convert” an RMD into a QCD because the RMD went through you rather than going directly from your IRA to a charity as required.

Finally, keep in mind that different RMD rules generally apply if you inherited a retirement account. For example, the time period for distributions is generally 10 years for beneficiaries — other than surviving spouses and certain others — inheriting plans after December 31, 2019.

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