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

How to fix the 401(k) and income inequality in one fell swoop
A former federal official has proposed to reduce the tax benefits of 401(k) contributions to high-income workers, and to establish a universal 401(k) plan that would have features, such as low fees and automatic enrollment, to fix the retirement system. The proposed universal 401(k) plan was considered in the past, but it failed to gain support in Congress. The government could still have other options to address the problem, such as cutting the federal estate tax exemption.  --CNN Money

Do you have the best or worst 401(k) plan?
The best 401(k) plans are held by employers that include workers immediately in the plans, match employees' basic contributions by up to 9%, and contribute up to 15% in additional funds, according to Forbes. If the 401(k) plans charge considerable costs, employees need to understand that employers are responsible under law to reduce costs and offer a diverse mix of mutual funds. Clients are advised to invest in index exchange-traded funds and to seek professional help to choose the right funds and have better matches.  --Forbes:

The 7 deadly sins of retirement
Clients are mistaken when planning for retirement if they think they don’t need professional help, can spend unscrupulously out of envy of other people, and can leave their jobs because of anger, according to MSN Money. Greed and laziness are other traits that keep clients from becoming successful in retirement planning. Another mistake that retirement investors make is getting distracted from their goals because of the desire to get more money, and aiming for things that are not realistic. -- MSN Money

How proper planning can avert a Casey Kasem-type drama
Clients can avoid major legal conflict upon their death between their spouse from their second marriage and their children from their first marriage if they prepare a plan in advance, according to MarketWatch. Such advance planning may use a number of tools, such as qualified terminal interest property and life insurance. Clients may also opt to have a revocable trust to help protect their wealth transfer wishes, and can conduct a family meeting to enable all beneficiaries to know in advance how the estate will be distributed.  --MarketWatch

Portfolio analysis: A cost-efficient $353,000 retirement plan
Instead of asking boiler-plate risk tolerance questions to know the clients' investment risks, a review of their existing portfolio in its entirety is a more effective way of determining if their risk profile matches their investments, according to U.S. News and World Report. See how an expert evaluates a retirement investor's portfolio based on diversification, risk, and costs. He also examines the portfolio's tax efficiency and performance.  --Yahoo Finance

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