Our daily roundup of retirement news your clients may be thinking about.

One way retirees could pay 0% in capital gains taxes
Retirees who opt to defer their Social Security and pension benefits and have zero taxable income may want to sell securities outside their retirement accounts, according to this article on Kiplinger. That is because they face no tax liability on capital gains if they are below the 15% tax bracket based on the rules. To take advantage of this, pre-retirees may want to increase their stock allocation in taxable accounts and boost their bond investments in their retirement accounts as their asset allocation allows.

Bloomberg News

What is my IRA RMD?
Retirees are compelled to take their first required minimum distribution from a tax-deferred retirement account in the year they turn 70 1/2, according to this article on Motley Fool. Although they have until April 1 of the following year to take the first RMD, they should not wait until the next year to take the mandatory distribution, as they will also have to take an RMD for that year. This could push them to a higher tax bracket and consequently trigger a bigger tax bill.

What we know for sure about in-retirement withdrawal rates
When determining a sustainable retirement withdrawal rate, clients should not be too accurate about the computation and instead use the information they know about setting this rate in customizing a flexible withdrawal strategy based on their circumstances, according to this article on Kiplinger. Most retirees prefer a source of stable income in retirement, although reality points to varying spending needs throughout the golden years and the recommended 4% rule is too conservative.

Want one last dig at your ex? Then collect on their Social Security
Clients are entitled to Social Security benefits on their former spouse's record even if he or she has not yet filed for benefits, according to this article on CNBC. Clients should remain unmarried to qualify for the divorced spousal benefit, and consider claiming the benefit at full retirement age. "It is important to file and commence benefits immediately upon reaching full retirement age because there is no delayed retirement credit eligibility for an ex-spouse," says an expert.

States want to help small business workers save for retirement, Washington says no
Small business workers would be the casualty under the Senate-cleared resolution that would repeal the Labor Department's guidance encouraging states to set up their own retirement programs for workers with no access to employer-sponsored plans, according to this article on Forbes. The guidance is deemed important, as most small businesses cannot afford to set up their own retirement plan. The situation could lead to more seniors without enough retirement savings within the next decade, says an expert. "And that means they are also going to depend on the state and the federal government for some very basic support services, not because they want to but because they have to."

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