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.

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