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

Two jobs, two retirement plans

Clients who have a side income from a consulting job or business have more cash to add to their nest eggs but may possibly have maxed out their contributions to their retirement plans, according to this article on Forbes. Choosing another retirement plan to open up can be tricky, so clients need to know what plan applies to them and the rules involved. Those who have maxed out their employer-sponsored 401(k) plans may consider contributing to a SEP-IRA, which allows up to $52,000 for 2014, or a solo 401(k), which consists of the employee and employer contributions. –Forbes

One of the most important retirement decisions you need to make

Clients are advised not to take a lump sum payment of their pension and use the money to pay off debt or roll it into an IRA, according to this article on Time Money. No matter how small it is, the pension provides a steady income that clients may not have on their IRA. Clients also will face capital gains or income taxes if they take a lump sum payment and decide not to roll the money into an IRA. Instead of using pension money to pay off debt, clients should reduce spending to have free cash to settle the loans and subsequently improve their cash flow. –Time Money

Don’t let the next downturn undermine your retirement

The recent market volatility is a reminder that retirement investors face a certain risk commonly ignored, the sequence of returns, according to this article on MarketWatch. A person's investment portfolio can be heavily damaged or even depleted by successive significant negative returns in the early years of retirement. Clients who engage in retirement planning are likely to succeed in addressing this risk by finding the right strategy and timing. –MarketWatch

401(k) and IRA changes coming in 2015

The Treasury is expected to offer the myRA, a new type of retirement account that is guaranteed by the government, starting in late 2014, according to this article in U.S. News & World Report. Also, limits to 401(k) contributions will be raised for next year while limits to IRA contributions will remain the same. IRA income limits and Roth IRA income cutoffs will increase next year, while saver's credit threshold for 401(k) plans and IRAs will be raised. –MSN Money

Retirement: Some struggle with leaving their jobs

While many people welcome retirement with enthusiasm, others are having a hard time leaving their jobs that have become a source of their identity over the years, according to experts. Retirement becomes a major transition for many people, and their attitude to retirement is based on whether they enjoy their job or not, an expert says. Some people opt to go back to their job as it meets their need for a structure, a purpose, and a sense of community,  according to Ernie Zelinski, author of "The Joy of Not Working" and "How to Retire Happy, Wild, and Free." –USA Today

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