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

Retirement: Minimize taxes to maximize savings
Workers are advised to max out their 401(k) contributions so they can reduce their taxable income and subsequently their tax bill, according to this article on USA Today. Those who have a taxable investment account need to wait for at least a year to sell investments as capital gains tax rate for long-term investments is much lower than short-term capital gains tax. Retirement investors are also advised to use the first in, first out strategy when selling stocks or funds in their portfolio as not doing so could trigger an audit and result in hefty penalties.  --USA Today

Why many middle-class households are outsaving the wealthy
A survey by Bankrate.com shows that more middle-class households are saving more for retirement compared with those in the higher-income groups, according to this article on Time Money.  "The middle class is increasingly aware that the saving for retirement is on them, and many have the discipline to do what's necessary. And they know they won't have the resources of wealthier households if they fall short," explains Greg McBride, chief financial analyst of Bankrate.com.  --Time Money

Four ways to de-bug your 401(k)
Workers need to act if they want their employer-sponsored retirement plan to improve, according to this article on Forbes. They should push their employer to manage the plan, as hiring a firm to manage it will mean additional fees. They also need to know how the employer compensates the plan's administrators and record-keepers and that the employer makes wise decisions concerning the plan. The plan's cost also has to be low, so workers need to push the employer to cut the cost as much as possible.  --Forbes

7 habits of highly effective retirement savers
People who are very good at retirement savings develop a budget and make the most of their employer-sponsored retirement plans, according to this article on CNBC. They also tend to determine the replacement income rate they will need after they retire, use the educational materials given by their employers for financial wellness programs and obtain life insurance. Highly effective retirement savers also seek financial advice from professionals and consult their spouses when planning for their lifestyle through the golden years.  --CNBC

82% of Americans are making a big retirement mistake
More than four-fifths of Americans don't have an IRA, and their reasons are not good enough for them to avoid this special investment account, which can significantly help them save for retirement, according to this article on The Motley Fool. Clients may consider contributing to a traditional IRA, which enables them to save on taxes by deducting their contributions from the taxable income. A Roth IRA is another option for those who want to withdraw from the account without paying any taxes.  --The Motley Fool  

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