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

Deducting IRA contributions on client tax returns
Clients can fully deduct their IRA contributions if they have no access to a workplace retirement plan, according to this article on Kiplinger. However, those who are covered by a retirement plan are entitled to a tax deduction for their IRA contributions if their modified adjusted gross income is below $71,000 (singles) or $118,000 (joint filers). The deductible amount begins to phase out if their income exceeds $61,000 (singles) or $98,000 (joint filers). For couples with one spouse having no access to a retirement plan, the IRA contributions could be tax-deductible if their joint income is below $194,000, and the couples also face no maximum income limit to make tax-deductible contributions.

3 IRA investing tips that could earn clients thousands
Clients who consider investing through an IRA to build a nest egg should determine which type of IRA to use, as these two IRA types are subject to different tax treatments, according to this article on Motley Fool. For example, clients are better off with a traditional IRA if they expect to be in a lower tax bracket in retirement, or they should choose a Roth IRA if they want to keep their current tax rate. Investors should park dividend growth stocks in their IRAs to maximize the tax benefits of an IRA.

The real cost of health care in retirement
Clients should prepare for their healthcare needs in retirement, as Medicare will not cover all the costs, according to this article on Barron's. These out-of-pocket medical costs are drugs and similar treatments, testing and physical treatments, and medical concierge services and health-care consultancy fees. Medicare also doesn't cover certain procedures, such as dental work and cataract surgery, as well as dementia and other chronic illnesses.

Ask Larry: Can my wife file at 62 and keep working?
A client who files for Social Security benefit at age 62 can expect a reduced benefit, according to this article on Forbes. Once she applies for her own retirement benefit, she is deemed to have filed for a spousal benefit on her husband's record, which would also mean a reduction in her spousal benefit.

Retirement planning doesn’t end when you retire
Clients should continue their retirement planning even after they leave the workplace for good, although their approach to income planning will have to change, according to this article on GoBankingRates. For pre-retirees, it is important to determine where they hold their retirement income assets and reallocate their investments based on several factors, such as risk, timing, taxes and longevity. To develop a retirement strategy, clients should account for various income sources, including retirement resources, earnings and income, asset and investment drawdown and legacy assets.

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