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

Don't pass up free retirement money from Uncle Sam
Many people who qualify for the Retirement Savings Contribution Credit can save as much as $2,000 on taxes but fail to claim the tax break during the tax season because they are not aware of it, according to this article on CBS Moneywatch. “The Saver’s Credit is a tax credit above and beyond the advantage of tax-deferred savings," says an expert. "Because this double benefit sounds too good to be true, many eligible savers may be actually confusing the two incentives.”

Image: Bloomberg
Image: Bloomberg

2 retirement account tax breaks you may not know about
Making catch-up contributions in 401(k) plan and Roth IRA is a strategy that enables clients who are 50 and older to get a tax break, according to this article on MarketWatch. Catch-up contributions in a 401(k) plan and a traditional IRA means bigger deduction in taxable income, while catch-up contributions in a Roth IRA means more tax-free withdrawals in retirement. Donating required minimum distributions directly from an IRA to a qualified charity is another option that retirees can use to save on taxes, as it enables them to avoid tax liability on the mandatory withdrawals.

Don't pass up free retirement money from Uncle Sam
Many people who qualify for the Retirement Savings Contribution Credit can save as much as $2,000 on taxes but fail to claim the tax break during the tax season because they are not aware of it, according to this article on CBS Moneywatch. “The Saver’s Credit is a tax credit above and beyond the advantage of tax-deferred savings," says an expert. "Because this double benefit sounds too good to be true, many eligible savers may be actually confusing the two incentives.”

Retirees, join a nonprofit as an encore career
The nonprofit sector offers many opportunities for retirees to make money and pursue an encore career, according to this article on Kiplinger. A survey has found that about 21 million workers aged 50 and above claim that they want to get a job that concerns education, human services and other social needs. For seniors who expect to have a long time horizon in retirement, “it’s so incredibly important to make these extra years meaningful, useful and productive,” says an expert.

Where can you save more for retirement? X marks the spot
A study by the Employee Benefits Research Institute shows that spending varies significantly depending on where people live, and this could mean that their location can be a factor in retirement saving, according to this article on Miami Herald. “National benchmarks are important and helpful, particularly in shaping national policies,” said an EBRI expert in a statement. “But individual retirees might find regional or local benchmarks that more closely reflect their personal situation to be more useful.”

What you're doing wrong in your IRA
Saving in a wrong type of IRA is one of the mistakes that retirement investors make, according to this article on Motley Fool. For example, instead of saving in a traditional IRA, clients who are likely to move in a higher tax bracket should have chosen a Roth IRA, as distributions from this account are not subject to taxes. Many IRA investors also make the mistake of not maxing out their contributions while others adopt a too conservative investing approach.

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