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

3 facts every retiree should know
Retirees are automatically enrolled in Medicare by the time they reach 65 if they are already collecting their Social Security benefits, according to this article on Motley Fool. They should also consider taking withdrawals from their tax-deferred retirement accounts to minimize the amount of required minimum distributions that they have to take starting at age 70 1/2, as the amount could boost their taxable income. Retirees are allowed to continue working while collecting Social Security benefits, but the earnings test will apply to determine their benefit payment if they are below their full retirement age.

Bloomberg News

Self-employed? Go ahead, make that IRA contribution
Clients are allowed to make full contributions to a Roth IRA even if they hold a Simplified Employee Pension or a solo 401(k), according to this article on Kiplinger. Their modified adjusted gross income should be below $133,000 if they are singular filers or $196,000 if they are married filing jointly. The contribution amount is phased out for clients whose income exceed $118,000 (single filers) or $186,000 (joint filers).

Mortgages for seniors? Available, but exacting
More seniors opt to carry a home mortgage into retirement instead of paying off the debt, according to this article on The New York Times. That's because having a mortgage allows them to make the most of low interest rates and tax breaks, and to have more savings to use for other purposes. “We could have paid cash for the place, but our financial adviser suggested that we get a mortgage so we can get a tax deduction, and our money keeps working for us," says a retiree.

Married couples have 81 ways to claim Social Security. Here's how to maximize your benefits
One strategy for married couples to maximize their Social Security benefits is to defer their benefits as long as they can, according to this article on CNBC. They should also consider the timing of their claim to make the most of their spousal benefits and survivor benefits. For example, a widow collecting survivor benefit should wait until she reaches the age of 60 to remarry to continue receiving the benefit, says a certified financial planner.

Why kids should stash summer job cash in a Roth IRA
Parents should consider teaching their children who are working this summer to sock away a portion of their earnings in a Roth IRA, according to this article on Los Angeles Times. This is one way to teach their children the value of investing. A Roth IRA is a good place to start, as the account offers more flexible terms for withdrawal and can also be used for other purposes aside from retirement. While a Roth IRA offers no upfront deduction, withdrawals are not subject to taxes.

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