3 reasons to ditch your IRA

Holding an investment retirement account may no longer be a good strategy to save for the golden years, according to an article on MarketWatch. Data show that tax rates will continue to rise, meaning clients can expect to pay higher taxes when they take withdrawals from tax-deferred retirement accounts in the future. Clients may also face hefty penalties if they fail to take required minimum distributions from their accounts at age 70 and a half. Also, estate planning gets more complicated if an IRA is part of the assets. –MarketWatch

Detroit emerges from bankruptcy, pension risk still intact

Detroit's bankruptcy exit plan received court approval on Friday, with the judge calling the agreement reached between the city and retired employees nearly "miraculous," according to an article on The New York Times. The state of Michigan, the Detroit Institute of Arts, the city’s water and sewer system, and foundations would strengthen the municipal pension system by pledging hundreds of millions of dollars. Retired workers also gave the green light to reduce their monthly pensions and other cutbacks. –The New York Times

Social Security Q&A: Can I collect spouse's or ex-spouse's benefits if I remarried after 60?

A client who has remarried after a divorce cannot file for spousal benefit on his ex-spouse's record, according to an article on Forbes. However, he is entitled for a survivor benefit on his ex-wife's record he since he remarried after he reached 60. While he is also allowed to get spousal benefit on his second wife's record, the benefit value will be lower because of the Government Pension Offset provision and other factors. –Forbes

Here’s a smart way to boost your tax-free retirement savings

Retirement savers with higher income are allowed to move after-tax contributions to their Roth IRAs from their 401(k) or 403(b) plan when leaving the plan, according to an IRS ruling. “With this new ruling, retirement savers are getting a huge increase in their ability contribute to a Roth IRA,” says Brian Holmes, president and CEO of Signature Estate and Investment Advisors. Clients can take advantage of the new ruling if after-tax contributions to a Roth 401(k) or other taxable account are allowed by their employer, and if they max out their pre-tax contributions. –Time Money

Are you letting fees destroy your retirement savings?

Many retirement investors are unaware that they pay fees for their investments, while these fees may be a small percentage, these fees could eat away a significant amount of money from the investors' retirement savings. A typical household is likely to pay about $150,000 in investment fees in a lifetime, says Yoav Zurel, CEO of FeeX. Clients are advised to take action to put these fees under control, and may request a fee disclosure from their employer for investments that are in their company's retirement plan. –Motley Fool

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