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

How to avoid the biggest 401(k) mistakes
It is a mistake for clients to leave their retirement money with their previous employer's 401(k) plan instead of transferring it to an IRA, according to MarketWatch. Many 401(k) investors also commit the mistake of not rebalancing their 401(k) portfolios and of scaling down their stock exposure when they retire or the market underperforms. To avoid these mistakes, clients are advised to invest in things under their control instead of speculating on the economy and other things beyond their control.   --MarketWatch

When does a Roth IRA make sense for you?
Clients need to check their finances and approximate their taxes in the future before deciding whether to hold a Roth IRA, which allows tax-free withdrawal in retirement, according to Motley Fool. Holding a Roth IRA is a better option if savings from upfront deductions will not be as much as their tax rate in retirement. Clients are advised to have a regular IRA instead of a Roth account if they are in a higher tax bracket now.  --Motley Fool

How an early 401(k) withdrawal affects your retirement security
Clients who take an early withdrawal from their traditional 401(k) plans actually receive less than the withdrawn amount because they need to pay an income tax and a penalty, according to an article in U.S. News & World Report. Early 401(k) withdrawal also means losing the opportunity to grow their investments. Clients will also have less retirement funds if they withdraw an amount from their 401(k) plans before they retire.   --Yahoo Finance

Building a solid nest egg: It's location, location, location
Clients should consider not only asset allocation, but also asset location, when building a nest egg for retirement, according to CNBC. This means clients need to choose between a taxable or nontaxable account. The article discusses differences between traditional and Roth IRAs, income and contribution limits, and the reasons why Roth IRA can be a good option for retirement savers.  --CNBC

The leeway in required IRA withdrawals
Retirees with multiple IRA accounts can draw their required minimum distributions from one of the accounts, provided they take the total amount that is required for all their accounts per year. The article is in response to a client whose wife has two small IRA accounts and is required to make an RMD. Clients can take the RMD for the year in installments instead of taking a lump-sum withdrawal based on the IRS.  -- Wall Street Journal

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