Editor's note: This is the first in a two-part series.

This article and another to follow later in the year review some of the basic rules of retirement distributions. Start with Social Security benefits. As discussed previously, there are options as to when you begin receiving Social Security benefits, basically from age 62 to age 70. While waiting until age 70 results in a ­significant increase in benefit amounts, there's no point in waiting beyond age 70. (And it is not correct to say that it's always better to wait until age 70. It depends on your particular circumstance, including your health and your family history.) Whatever choice you make, payments will be subject to federal income tax for most people: up to 85 percent of Social Security benefits can be subject to federal income taxes depending on the taxpayer's income level. One of the choices you will make when you begin receiving benefits is whether you want federal income tax withheld from your payments. If you are enrolled in the Medicare program, the required payments for that program will be deducted from your Social Security benefits. (Medicare costs are adjusted upward for higher income enrollees, but if your income subsequently falls in retirement, you can seek an adjustment in these required payments.) Once you have decided when you want to begin receiving Social Security benefits, the other decisions are not ­complicated. Most people receive their benefit payments through direct deposit into a bank account. As I have also discussed previously, Social Security has an informative and user-friendly website, and my experiences with agents of the Social Security Administration have been positive.

Medicare is a program with more choices, some of them complex, and while Medicare also has an excellent website, the wide range of choices available for health care in ­retirement means that either more study of those choices is required or outside assistance should be obtained. This is an aspect of retirement distributions, because planning on how to optimize those distributions ­includes consideration of what expenses will be incurred in retirement. The choices made regarding Medicare, and supplemental health insurance, can have varying effects on the need for retirement distributions. Put another way, planning for retirement distributions includes planning for retirement expenses.