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


Don't overlook this tax credit for clients
Clients who contribute to retirement accounts are advised to take advantage of the retirement saver's tax credit, according to CNBC. Only 25% of retirement savers who qualify for this tax credit are familiar with it based on a survey by the Transamerica Center for Retirement Studies. "Most people don't like to think about taxes, even when there is a credit involved. Whereas people are very familiar with the ability to save for retirement on a tax-deferred basis, it sounds almost too good to be true that they could also get a credit for saving," said TCRS President Catherine Collinson. --CNBC

The 2 best ways to structure a QLAC
Qualified longevity annuity contracts continue to grow in popularity with traditional IRAs because they allow client to lower taxes on their required minimum distributions, as well as receive a lifetime income stream. Be sure clients know the benefits and limitations of each choice. More traditional IRA investors are buying a qualified longevity annuity contract within the account as it could help reduce their required minimum distribution and subsequent tax bite, according to MarketWatch. Investors who want to receive the biggest possible payout throughout retirement without any desire of leaving anything behind when they die may opt to structure their QLAC as "life only." Those who intend to have guaranteed income for a lifetime but also want their loved ones to receive the remaining amount of their annuity may choose "life with cash refund" to structure their QLAC.  --MarketWatchs

Help clients avoid these 401(k) mistakes
Although measures are in place to help 401(k) participants protect their retirement assets, some plans lack some of these safety features while others are of low quality, writes Christine Benz, director of personal finance of Morningstar.  "Plans offered by small employers may be larded with extra administrative fees or high-cost funds, and their lineups may skimp on core asset classes such as international equity or fixed income," writes Benz, who identify some 20 common mistakes that 401(k) participants as well as ways to avoid these missteps.  --Morningstar

What Americans are saving for -- it's not retirement
A survey found that 52% of non-retirees claim that they are saving adequately for their golden years, according to Forbes. Clients who want to save more are advised to pay off their credit card debt that charges hefty interest rates and create an emergency fund. Workers also have to take advantage of their workplace retirement plan, opt for automatic transfer of a portion of their salary to a savings or brokerage account and pay down their home mortgage.  --Forbes

Help clients make the most of retirement health care options
Early retirees can take advantage of the health insurance subsidies under the Affordable Care Act by taking actions that would maintain their retirement income at a level for them to be eligible for these benefits, according to Money. They are advised to have an income that will exceed a certain percentage of the Federal Poverty Level depending on the states where they reside, keep their modified adjusted gross income between 100%-250% of FPL and pick a Silver plan so they will qualify for the Cost Sharing Subsidy Reduction. Early retirees should make sure their income is below 400% of the FPL to continue getting the ACA subsidies and avoid paying health insurance premiums.  --Money

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