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

How to take required distributions

Taking a required minimum distribution from a retirement account to satisfy the RMD of another account is allowed only if both accounts are traditional noninherited IRAS or noninherited 403(b) plans, according to this article on Morningstar. Separate RMDs are required for all qualified plans, while RMDs from Roth IRAs will not be counted toward RMDs from traditional IRAs. Distributions from inherited accounts cannot be used to offset the RMD from their own account, and inherited IRAs cannot be aggregated if these accounts were left by different decedents. Also, a client's RMD cannot be used to reduce his or her spouse's RMD. –Morningstar

401(k) or IRA? How to decide where to save for retirement

When deciding on where to save for retirement, clients need to account for free money in the form of profit-sharing contributions or match contribution which a 401(k) plan may offer, according to this article on The Motley Fool. An IRA is a better place to invest for retirement because of its more flexible arrangements, while a Roth IRA is recommended if clients seek tax-free advantages. Clients may also consider holding investments in taxable accounts to gain from preferential tax rates on dividend income and long-term capital gains, as well as to avoid worrying about early withdrawal penalties and other special tax outcomes. –The Motley Fool

IRA advisors face tougher standards on rollovers

When deciding whether to roll over old 401(k) assets to an IRA, clients need to weigh in the fees involved and to know whether they can handle the investment options offered in the IRA, according to this article in The Wall Street Journal. An IRA rollover is a good decision if clients want to consolidate their retirement accounts for simplicity. Other factors to consider before making a rollover are the rules on required minimum distributions, creditor protections and tax benefits that the IRA offers. –The Wall Street Journal

Despite their anxiety, couple's retirement goals are within reach

Studies show that many pre-retirees are anxious about their financial prospects after they retire and have failed to develop a financial blueprint to follow in retirement, according to this article on Los Angeles Times. A financial planner advises a couple who is facing retirement to eliminate their credit card debt and one of them to start collecting Social Security retirement. They are also advised to defer selling their home, stop term life insurance payments and tap annuity only when they turn 70. –Los Angeles Times

Social Security Q&A: Should clients claim early and invest in the market?

Social Security should be viewed as an insurance policy that covers longevity risk and not as an investment, according to this article on Forbes. A person who intends to start collecting retirement benefit and use it to invest for a higher return needs to know that on a risk-adjusted basis, such a strategy would mean getting an investment that would produce a return of 0.8% real (after inflation) instead of having a security that offers 3% real (after inflation). –Forbes

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