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

Ask Larry: Can I reinstate for a few months then withdraw?
Retirees can suspend and resume their Social Security retirement benefits any time after their full retirement age, even if they started collecting the benefit before reaching their FRA, according to this article on Forbes. They earn Delayed Retirement Credit for each month they suspend the benefit and don't need to repay the benefits they have received since it is not the same as withdrawing the benefit.

Image: Bloomberg
Image: Bloomberg

What you need to know about 401(k) taxes in 2017
Contributions to a 401(k) plan can be tax-deferred, enabling workers to reduce their taxable income and minimize their tax bill, according to this article on Motley Fool. 401(k) participants also qualify for the Retirement Savings Contributions Credit if their annual income does not exceed a certain threshold, which is $31,000 for 2017. Clients who withdraw their 401(k) funds owe taxes only on the pre-tax and investment gains portions of the distribution, provided they reach 59 1/2 by the time they make the withdrawals. Those who withdraw the funds before turning 59 1/2 face a 10% penalty in addition to taxes.

Steps 401(k) advisers can take to avoid legal claims
401(k) advisers should inform their participants promptly about the fees that the plan charges them to reduce the odds of getting sued in the future, writes a wealth manager on The Wall Street Journal. They should also review their services to ensure that the participants receive the best value for the fees they pay, the expert says. "It’s also important to maintain a strong presence among plan participants and support their retirement outcomes through a solid and regular education program."

Do this with your retirement portfolio if you're worried about a correction
A market correction is likely in the future, and retirement investors are advised to stick to their investment strategy, according to this article on CNBC. This could mean rebalancing their retirement portfolio if their investments have gone off track of the portfolio's ideal asset allocation. "Rather than focus on what direction the market will take, which no one really knows, focus on what you can control," says a certified financial planner.

Retirement planning: Boomers navigate impact of financial crisis
A majority of baby boomers polled by Bankers Life Center for a Secure Retirement said that the economy has yet to fully recover from the 2007 financial meltdown, according to this article on Fox Business. Baby boomers suffered from permanent financial impairment as they lost trust in institutions, the survey also found. “[Before the Great Recession] Boomers had a clear vision of what a personally satisfying retirement looked like. But today, many are realizing they will not be as financially independent in retirement as they once expected,” says Bankers Life President Scott Goldberg.

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