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

Qualified charitable distributions (QCDs) from IRAs

A new law allows seniors to donate to charity directly from their IRA, and this option is beneficial to retirees who reach the age of 70 ½ and are required to take a distribution from the account, according to Forbes. Those who are still working and belong in a high tax bracket are likely to gain the most from this option, since the charitable donation directly from IRA will be counted towards their required minimum distribution but will not be added to their taxable income. Also, qualified charitable distributions can lower their adjusted gross income, upon which some tax deductions will be based. — Forbes

Even millennials with 401(K)s will face huge retirement challenges

Young workers who want to live comfortably in retirement will need to work longer and cut their spending, according to a report from McKinsey and Company. Dwindling gains on U.S. bonds and equities could continue for the next two decades, ultimately weakening their 401(k)s and other investments over the next 30 years, the report says. — Fortune

Planning your clients' post-retirement careers

Planning is necessary for clients who want to continue working, or for those who may consider a new career in retirement, according to Harvard Business Review. When planning, clients are advised to determine the income they need and the flexibility that the new job will provide so they will have time for traveling and other hobbies. Also, clients have to ask themselves if they want a job that is the same as they previous work or one that will be a big departure from what they have been doing in their pre-retirement career. Planning early will give them time to prepare and test-drive the decision before retiring. — Harvard Business Review

Here's how much the bull market helped savers

Although the investors have recouped more than 200% in gains from S&P 500 since the markets bounced back in March 2009, those who are investing for retirement have not benefitted that much from the bull market, according to CNBC. Based on data from Fidelity Investments, 401(k) balances of investors in their 60s stood at about $120,000 in 2007 before plunging to about $90,000 during the first months of 2009. While the balances grew back to over $150,000 by the end of 2015, the amount is below the account balance recommended for pre-retirees. — CNBC

10 reasons for your clients to retire to a tiny house

Many seniors have opted to downsize to a tiny house for numerous economic rewards, according to this article on Money. For one, living in a tiny house allows seniors to avoid carrying mortgage debt burden into retirement, to move their home when necessary, and to live comfortably near their loved ones. Those who consider joining the tiny house bandwagon are advised to know more about the benefits as well as the downsides before making a decision. — Money

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