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

With lower taxes, consider a Roth conversion to make the most of lower rates
Converting a portion of traditional IRA assets into a Roth is a tax-smart move for investors who expect to be in a higher tax bracket after they retire, according to this article from Kiplinger. A Roth conversion is also recommended to clients who expect an increase in the value of their retirement accounts and are willing to pay less in taxes on their retirement savings. The new tax law lowers the tax rates for many investors, allowing clients to enhance tax savings on the converted amount.


Answering the most important retirement planning question
Clients are advised to account for life expectancy when planning for retirement to arrive at a sound and reasonable plan, writes a Forbes contributor. "When life expectancy is underestimated, there’s a real risk of running out of money in retirement — and doing so many years before retirement ends," explains the expert. "On the other hand, overestimating life expectancy means retirees save too much and have lower standards of living than they could afford."

3 things you need to know about 401(k) distributions
401(k) participants get upfront tax deduction on their contributions, but have to wait until they turn 59 1/2 to start taking distributions, according to this article on personal finance website Motley Fool. Withdrawals will be subject to income taxes, and clients may face a 10% penalty if they opt to take distributions before that age. Cashing out 401(k) assets after resignation could also mean taking early distributions subject to taxation and penalty.

8 myths about annuities in retirement
This article on U.S. News & World Report lists common misconceptions that investors have about annuity products. Before buying an annuity, it is important for clients to know the terms fully. "The concept of an annuity is simply a series of fixed payments over a period of time," says an expert. "The goal of annuities is to provide a steady stream of income beginning either immediately or at some point in the future."