From tackling taxes to doubling down on debt — here’s what Americans can (and should) do at age 59 ½

Age 59 ½ isn’t considered a popular milestone, but it probably should be. At this age, a flurry of new financial options and benefits become available to you.

It’s also a good time to double-down on your investment strategy so that you can make your retirement as comfortable as possible.

If you’re quickly approaching or already at this underrated milestone, here’s what you should know.

According to the Internal Revenue Service (IRS), “most retirement plan distributions are subject to income tax and may be subject to an additional 10% tax.”

However, at age 59 ½, withdrawals are no longer subject to that 10% penalty. That means it’s easier to start drawing down cash from your 401(k) plan, Roth IRA or any other qualified retirement program.

To be clear, just because you can easily withdraw money doesn’t necessarily mean you should. But having the option to start living off some of your nest egg gives you the flexibility and peace of mind you need as you rapidly approach retirement.

One way to take advantage of this flexibility is to consider commencing a Roth IRA conversion. This maneuver is when you take money from a traditional retirement account (like a traditional IRA or 401(k)) and move it into a Roth IRA.

When you do this, you pay taxes now on the money you move, but then it can grow tax-free — and you won’t owe taxes when you take it out in retirement.

At age 59 ½, your withdrawals are no longer subject to a 10% penalty, which means it’s cheaper to start moving money to the Roth IRA. This age is also a sweet spot because it’s roughly 13 years away from age 73, which is when you have to start making Required Minimum Distributions (RMDs).

To be fair, most Americans retire before the age of 65, while the median retirement age is 62, according to research from the Transamerica Center for Retirement Studies. That means you may be just a few years away from retirement at 59 ½, and should be ramping up your efforts in this final stretch.

Read more: Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?