6 Financial Mistakes You Should Avoid in Your 50s

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5. Rolling Over Your 401(k) Too Soon

If you’ve managed to acquire a large nest egg and are able to retire in your mid-50s, you can make penalty-free withdrawals from your 401(k) if you’re aged between 55 and 59½. But, if you roll over your 401(k)before you reach the age of 59½, you’ll be charged a 10% fee every time you take money out.

There is an advantage of rolling over your 401(k), just be careful not to do it too early. If you do it after you turn 60 you’ll be able to roll it into an IRA. It’s a good idea to keep all of your money in one place so that you don’t have to pay recordkeeping fees on every open account you have. This is a lesser-known loophole that will allow you to retire early if you’ve got an already generous retirement fund.

6. Not Contributing to an HSA

HSAs are pre-tax contributions that you can make to cover any medical expenses. If you’ve got a high-deductible health insurance plan you can qualify for an HSA. These accounts are available through your insurance provider and at certain banks.

There are limits to your contributions though – $3,400 per year for an individual and $6,750 for families. But, once you reach 55 it’s possible to make a $1,000 catch-up contribution. You can use funds from your HSA to pay for medical bills, prescriptions, medical visits, and contact lenses. If you know you will be spending this money anyway, then you’ll save a lot using an HSA as it’s tax-free.