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

Do your clients know the differences in the various IRAs?
Clients should understand the differences between the types of IRAs available to them, as choosing an account type can greatly affect their long-term retirement savings, writes a Forbes contributor. "Investors may have a choice between a traditional and a Roth IRA, both of which have distinct advantages and limitations," writes the expert. "The difference between the two generally comes down to investor eligibility and when taxes are paid. Additionally, variations in contribution limits and withdrawal policies may play a role in determining which IRA is more appropriate."


Opinion: This is one retirement saving strategy your boss probably won’t support
Although workers are allowed to convert their 401(k) assets into a traditional IRA and the after-tax portion of these assets into a Roth, there are rules that can have a negative impact in some situations, writes an expert on MarketWatch. "The reality is that for most executives, the actual amount they could contribute to such plans is so modest and the resulting tax benefits so small, that spending the time and effort to establish this additional plan benefit may be unwise for most companies," writes the expert.

What should clients know about permanent life insurance?
Most Americans have limited knowledge about the living and tax benefits of permanent life insurance, according to this article on Fox Business, citing a study by Allianz Life. "Tax efficient strategies are an essential part of financial planning, so it’s important that people include life insurance solutions in the overall conversation," says an expert. "A permanent life insurance policy provides three distinct tax advantages – tax-deferred cash value accumulation potential, income-tax-free loans and withdrawals and, of course, the income-tax-free death benefit. Any or all of these can be a real benefit when considering future financial needs."

Why annuities belong in 401(k) plans
Many people want guaranteed income in retirement but are not willing to use their assets to achieve this, writes an expert with Morningstar. One way to encourage this is to allow them to buy an annuity within their 401(k) plans, writes the expert. "Just as Social Security builds a retirement-income foundation by garnishing an employee’s wages and defined-benefit plans supplement that base by operating similarly, so should 401(k) plans ease the trepidation of annuity purchases."

Roth IRA utopia: Is now the right time to convert?
A Roth IRA conversion is one way for inventors to achieve tax diversification in their portfolios, as the accounts provides after-tax income in retirement, according to this article on Kiplinger. The new tax law also increases the tax benefit of converting traditional IRA assets into a Roth, as the tax bill for the converted account will be lower thanks to lower tax rates under the new law. Moreover, a Roth IRA is not subject to required minimum distributions rules, meaning they can leave the assets in the account to grow as a legacy for their heirs once they pass away.

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