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

What you need to know before establishing a Roth IRA for your kids
Parents who want a Roth IRA for their child should ensure that the younger has earned an income to be able to open the account, according to this article on Forbes. They should ensure that the employment is valid and the child rendered the paid services in connection with a business activity. Moreover, the pay that the child received should be commensurate to the services he or she performed.

Bloomberg News

It will cost you if you fail to take out retirement cash by this deadline
Retirees who turned 70 1/2 last year have until April 1 to take required minimum distributions from their IRAs to avoid paying a hefty penalty, according to this article on CNBC. They will also need to take another RMD for 2018 by the end of 2018. "In theory, you're taking two RMDs right in this year," says an expert. "For some people, that might not be ideal for their tax bracket."

How much do we spend on long-term care?
Based on estimates from Boston College Center for Retirement Research, 45% of the long-term care costs by seniors aged 65 and above are covered by Medicaid, writes Alicia H. Munnell, the center's director, on MarketWatch. However, Medicaid's role in long-term care is reduced if Medicare's coverage for 100 days and some home health services is included, writes the expert. "The treatment of Medicare payments not only affects the relative role of Medicaid, but it also affects the basic conception of the risk of long-term care. Is it a frequent, relatively short, and inexpensive experience or an infrequent, long, and bankrupting event?"

Why don't more people wait to claim Social Security at 70?
Many seniors opt to file for Social Security benefits as early as 62 although they can delay the benefits until the age of 70, according to this article on Motley Fool. That's because they planned to retire early and are concerned that future benefits would be reduced as a result of the program's financial woes. Seniors who are in good health and are still working should delay the benefit as long as they can to maximize the their retirement benefits.

7 real-life lessons for a dream retirement
When planning for retirement, clients should consider converting some their traditional IRA assets into a Roth to sidestep required minimum distributions in retirement, according to this article on Kiplinger. RMDs are subject to income taxes and thereby bump retirees to a higher tax bracket. "I wish that I [had] started converting some of my 401(k) into Roth IRAs on an annual basis beginning when I retired at age 57. I was in a lower tax bracket than I am now as a result of taking RMDs," says a retiree.