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

Clients should consider giving retirement a test run
Clients who are unsure about their retirement prospects are advised to give it a try before fully committing to it, according to an article on MarketWatch. Pre-retiree clients are encouraged to take a one- or two-month leave from work, if possible, to determine if they are comfortable with having a lot of free time for themselves. The test run may also include creating a new, scaled-back budget and relocating to a retirement community or another state. --MarketWatch

The IRA rules clients need to know
For retirement savers, knowing the basic rules for IRAs is crucial but not as complicated as most people expect, according to this article on the Motley Fool. The tax benefits vary depending on the type of IRA (traditional or Roth) that clients invest in, but the limits for all IRA types are the same at $5,500 and may go up to $6,500 for investors who are at least 50 years old. With the deadline for IRA contributions for tax year 2015 set on April 15, 2016, read more about setting up an IRA account, the investment options within an IRA and the rules governing withdrawals.  -- Motley Fool

Nearing retirement? It’s time to be creative
Many pre-retirees need to be creative in their finances as they will retire with no pension, inadequate savings and poor job prospects but face a longer life span, according to this article in The New York Times. Clients are advised to assess their circumstances and develop a retirement plan. They may also delay their Social Security retirement benefits and continue working even past their retirement age. Moving to a state that offers lower living costs is also another option for those who have insufficient savings.  --The New York Times

Tapping into 401(k)s early is tempting but perilous
Taking a loan from a 401(k) plan is a good move to meet short-term needs, but borrowing from a retirement plan is generally discouraged, according to this article on USA Today. "The main argument against borrowing from a 401(k) is lost investment return," an expert says. "The money borrowed is paid back with a fixed amount of interest rather than a potentially higher return from stock and bond investments."  --USA Today

How to pick which retirement account to draw from first
Clients who hold different savings accounts may tap taxable accounts first before taking distributions from taxable retirement accounts and Roth accounts, according to this article on MarketWatch. However, such a strategy could result in a bigger tax burden in the long run. This article tells investors to work with an advisor to decide whether they should take more from their taxable retirement accounts even before RMDs kick in and either spend it, invest it in a taxable account or convert it to a Roth IRA.  -- MarketWatch

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