Our daily roundup of retirement news your clients may be thinking about.
Clients are advised to direct some of their retirement savings to a Roth account to avoid sizeable taxable withdrawals from traditional retirement accounts, according to this article on personal finance website Motley Fool. Distributions from these tax-deferred accounts can boost their taxable income. Seniors are expected to pay income taxes on a certain portion of their Social Security benefits if their taxable income plus 50% of the benefits exceed a certain threshold.
Oregon, California and eight other states are now offering a state-sponsored retirement plan for workers who have no access to 401(k) plans to save for their golden years, according to this article on MarketWatch. Employees can contribute to these state plans through payroll deductions just like in 401(k) plans. These state-sponsored retirement plans are Roth accounts, meaning contributions are made with after-tax dollars and distributions in retirement will not be subject to income taxes.
This article from U.S. News & World Report offers tips on how seniors can achieve a more relaxing life in retirement. To avoid stress in retirement, seniors should ensure that they are financially prepared to retire, they know how to spend their ample time, and they develop a strategy to time their withdrawals and keep up with inflation. They should also stick to their budget, pay bills automatically and consolidate their financial resources.
Seeking guidance from experienced folks and younger people can help retirees gain a better perspective, according to this article from USA Today. Living overseas or moving to the countryside can also help. Consolidating retirement assets, creating a succession plan for their business and knowing the difference between cash flow and income are other ways retirees should consider to secure their golden years.
