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Warning: clients may not own all the money in their 401(k)s

Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.

CNBC: You might not own all of the money in your 401(k)—here’s how to find out

It's important to remind clients they won't own the entire balance of their 401(k) until they are fully vested in the plan — especially if they get an employer's match, according to this article in CNBC. "Your vesting schedule applies to the type of money, not on the exact amount that was deposited,” says Fred Egler, an advisor at Betterment. “For example, if your employer contributed $100 to the match, the returns were $10 and you’re 50% vested, you get $55: half the contribution, and half the earnings."

The Wall Street Journal: Retirees’ mandatory IRA withdrawals would shrink under Treasury plan

The Treasury Department unveiled a proposal that would reduce the mandatory withdrawals from IRAs as part of the adjustment for increased longevity, according to this article in The Wall Street Journal. This would also result in lower taxable income for retirees, says Ed Slott, a retirement expert and Financial Planning contributor. “Everybody does a little better, except the people that have to do all the paperwork. And they’ll do better in fees.”

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Barron's: How, and why, to build a Social Security ‘bridge’ with your 401(k)

Seniors can build a Social Security "bridge" using their 401(k) assets to delay their retirement benefits until the age of 70 and boost their benefit payouts, according to a white paper by experts at Boston College Center for Retirement Research cited in this Barron’s article. “What comes out of this paper is that the best way to buy more guaranteed income is to defer claiming Social Security. Not everybody can defer their benefits, but the paper is arguing that people’s first choice should be to use their 401(k) to enable them to buy this inflation-adjusted annuity through Social Security,” says researcher Alicia H. Munnell, the center's director.

The Wall Street Journal: How to use the HSA, for medical or retirement savings

A health savings account offers triple tax benefits and can be a powerful tool to save for health care and retirement when used correctly, according to this article in The Wall Street Journal. Clients who want to reap the most benefits out of their HSA and 401(k) should contribute enough to receive an employer match when available. However, they must stop funding their HSA once they have signed up for Medicare. “Everything about retirement planning says, ‘Start young, be regular and invest.’ That’s what we want people to hear about HSAs,” says Roy Ramthun, a consultant who specializes in HSAs.

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