In this chapter, we will discuss the different types of compensation, provide. an understanding of the safe harbor rules, calculate and evaluate the. compensation test (Demo 9), look at compensation limitations, and explain. which definition of compensation is needed for the worksheet questions.
To draw full retirement benefits, the following Social Security Administration age rules apply: Born in 1937 or earlier-Full retirement can be drawn at age 65. Born in 1938 - Full retirement can be drawn at age 65 years and 2 months.Born in 1939 -- Full retirement can be drawn at age 65 years and 4 months.ou can retire as early as age 62, but if you retire before your full retirement age, your benefits will be permanently reduced, based on your age. For example, if you retire at age 62, your benefit would be about 25 percent lower than what it would be if you waited until you reach full retirement age.
For each birth year after 1954, the retirement age rises by two months, so if you were born in 1959, your full retirement age is 66 and 10 months. You can collect a Social Security retirement benefit starting at age 62, but it will be 30 percent lower than if you waited until age 66.Persons born in 1960 and later must wait until age 67 to collect their full retirement benefit.t that age you can start withdrawals from your 401(k) or IRA without penalty, although you must pay income taxes on the withdrawals. You must start drawing money from the accounts when you reach age 70 Â½.