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

Democrats rethink Social Security strategy

More Democratic lawmakers are pushing for a measure that would increase Social Security benefits and raise payroll taxes to address the program's financial woes, according to this article in The Wall Street Journal. However, such an initiative could go against the plans of Hillary Clinton, who could be the party's presidential candidate next year. Clinton wants to form a bipartisan commission similar to one during the Reagan administration to fix the program's solvency. –The Wall Street Journal

Retirees, reduce your RMDs with a Roth conversion

Retirees who want to take lower RMDS from their traditional IRAs and reduce their tax liability are advised to convert a portion of their IRAs to a Roth account, according to this article on Kiplinger. Although such a move will be subject to taxes, the Roth account offers tax-free growth and an RMD is not mandatory. Clients need to account for the income thresholds for the Medicare Part B and Part D surcharge when determining the percentage of traditional IRA to be converted to a Roth account to avoid higher premiums. –Kiplinger

Should you roll over your old 401(k)?

Workers may consider leaving their 401(k) assets with their previous employer if the old plan has better investment options compared with the new one, says Jason Hall, an expert with The Motley Fool. Rolling over an old 401(k) plan into an IRA is a smart move if it offers better options and lower fees, says Dan Dzombak. A 401(k) rollover is not always recommended especially if the old plan has lower fees because of access to a low-cost institutional class of mutual funds and the account includes an employer stock, says Dan Caplinger. Whatever decision that clients make, they are advised to keep their money invested and to avoid cashing out their old 401(k) assets, says Matt Frankel. –The Motley Fool

Look who's retiring later

Data from TD Ameritrade show that two-thirds of workers faced a financial disruption that led to a change in their financial behavior, with about 50% of these people expecting to defer retirement or not retire at all, according to this article on CNBC. Only 20% of those who experienced a disruption claimed they recovered from the crisis, the group finds. "The fact that there are financial disruptions was not surprising. We have seen evidence that financial disruption happens throughout life," said Matt Sadowsky, director of retirement and annuities at TD Ameritrade. –CNBC

Social Security Q&A: Does deportation disallow collecting benefits?

Clients who have been deported from the U.S. cannot expect to receive retirement benefits from Social Security, according to this article on Forbes. Deportees can claim their retirement benefits only when the U.S. government accepts them again for permanent residency. They are advised to read the Social Security's manual to know more about the rules that apply to workers who have been deported to their country of origin. –Forbes

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