401(k) features all workers should know

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

401(k) features everyone should know about
401(k) plans offer numerous benefits to clients saving for retirement, such as generous contribution limits every year and in employer's matching contributions, according to this article on Motley Fool. Clients also get upfront tax deduction for their contributions and enjoy tax-deferred growth on their savings. Older clients who opt to continue working past the age of 70 1/2 can still contribute to their 401(k) account and avoid taking the required minimum distribution, which is treated as taxable income.

Your most important Medicare decision
Seniors should ensure that they sign up for Medicare by the time they turn 65 to get coverage for preexisting health conditions, writes an expert on CBS Moneywatch. When enrolling in Medicare, they are advised to gain knowledge about the four parts of Medicare and identify health services that are not covered by the program, writes the expert. "Get help if you feel intimidated by your decision. And think long-term -- your choice today can help you live a longer, healthier life."

The best financial planning options for near retirees
Clients who are close to retirement should consider hiring a financial planner who is an expert on estate planning, taxes and other concerns, according to this article on Kiplinger. "Comprehensive financial advice is so critical; it's more important than investment advice," says an expert. "If I don't look at whether you have a will and power of attorney and something happens to you, whatever we've made in the markets could be obliterated."

Can your client retire yet? Here’s how to find out
Clients can determine whether they are ready to retire without using a retirement calculator by simply keeping track of their expenses, according to this article on ETF Trends. By having a good estimate of expenses, clients will be able to figure out the amount of income they will need. Those who want to retire early should ensure they get fixed-income investments and identify strategies to make the most of their Social Security benefits.

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401(k) Retirement planning Retirement education Retirement income Social Security Medicare