Tax strategies

Those who signed up in the past year will get a smaller pension than they would under the old system, but they can expect additional benefits from the tax-advantaged Thrift Savings Plan.

Retirement plans may decline to offer delayed RMDs, plan loans, stretch and hardship distributions and a host of other legally sanctioned tax maneuvers.

Although the test is complicated and misunderstood, eliminating it could “do more harm than good,” according to an expert.

The cap on state and local tax deduction under the tax law may prompt more employees to direct their retirement savings to their 401(k)s than to build home equity.

Although more taxpayers are expected to use the standard deduction, they can still claim the tax deduction for IRA contributions.

Although earnings in a deferred annuity will not be included in an investor's adjusted gross income, future withdrawals from the annuity could trigger a bigger tax bill.

Companies often fail to implement the unique FICA tax rules applied to NQDC plans and this can create confusion.

One approach to determine a retirement withdrawal rate is to set a fixed percentage of their portfolio every year, says an expert. But there are other strategies, as well.

Clients will be able to contribute more to these accounts in 2019 because of changes in tax law, but choosing a plan is still no easy decision.

The new year is expected to be a turning point that will help more workers secure their retirement.