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

Encourage clients not to raid their 401(k)
Tapping retirement assets in a 401(k) or an IRA is a big mistake that clients should avoid, according to this article on Barron's. Early withdrawals from these retirement accounts would trigger tax liability and a hefty penalty. Clients who make early distributions miss out on the opportunity to grow their money through compounding over time. To avoid these early withdrawals, advisers should encourage clients to create a separate savings account for emergencies and other unforeseen expenses.

Hire help to handle hefty medical bills
Retirees who went through a health crisis could face an enormous pile of medical bills and would be better off hiring a professional — possibly a health insurance claims specialist — to manage these costs, according to this article on Kiplinger. Paying these bills requires knowledge about the complex insurance system, certain jargon and codes, deadlines and filing for an appeal in case their healthcare claims are denied. “It’s not a process you get good at because hopefully you don’t go through it very much,” an expert says.

One millennial money habit that all retirees should adopt
Just like what millennials do, retirees are better off paying their bills online or making automated payments of their recurring charges, according to this article on Money. Paying online and opting for automated payments make the process easier and more convenient for retirees who have two residences and enable them to avoid penalties for late payments.

Workplace retirement plan may limit IRA contribution deductions
Taxpayers who are not covered by an employer-sponsored retirement plan can deduct the full amount of contributions they made to traditional IRAs, according to this Forbes article. However, for those who are covered by a workplace retirement plan, the tax deductible amount for IRA contributions will be based on their adjusted gross income, regardless of whether they have made actual contributions to their workplace plan.

Do you have enough retirement savings for your age?
Clients can tell if they are on track in achieving their retirement saving goals based on a number of indicators, according to this article on CNNMoney. These include the amount of savings they have in their retirement accounts at a given age, the amount of income they earn, the age at which they intend to retire and longevity. They must also factor in the kind of lifestyle they want to have in their golden years, whether a traditional pension is one of their income sources and whether they have a sustainable withdrawal strategy.

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