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

What baby boomers need to know about required minimum distributions
The oldest baby boomers will turn 70 1/2 this year, which means they will have to start taking required minimum distributions from their 401(k) plans and IRAs, according to this article on Forbes. IRA investors who turn 70 before June 30 are considered to have turned 70 1/2 before Dec. 31 and should draw their first RMD by April 18, 2018. Those with assets in 401(k) plans and other qualified retirement accounts should check their plan documents to determine when they should start taking their RMD.

Image: Fotolia
(Fotolia)

Qualifying for the retirement savers' tax credit
Retirees who receive a small income from a part-time job are entitled to a retirement savers' tax credit for contributing to a Roth IRA, according to this article on Kiplinger. The tax break is based on their adjusted gross income and the amount of savings that they put into the account. For example, the retirement savers' tax credit last year would be 10% of the contributions for joint filers with an AGI between $40,001 and $61,500, and single filers whose AGI is between $20,001 and $30,750.

After retirement, clients may find a ‘second career’ as a volunteer
Some seniors find meaning and purpose in life after leaving the workforce for good by helping others through volunteering. This New York Times article shares the experience of a retired lawyer who is now working as a Financial Coaching Corps volunteer with a program for retirees. “The most rewarding part is knowing that you really helped get someone on the right path,” the retiree says.

5 practical steps for creating a retirement backup plan
Clients should have a retirement backup plan, as survey results show that many are forced to retire because of job loss and poor health, according to this article on CBS Moneywatch. An expert with the Transamerica Center for Retirement Studies offers a five-step strategy to help develop a backup to prepare for unexpected retirement. The strategy includes updating their professional skills and personal network, keeping a financial plan, reviewing their insurance policy, sharing their plans with trusted family members and staying healthy.

Just retired and inheriting $1 million: Is there a downside?
A new retiree who just received an inheritance is advised to consider their overall goals and financial resources to ensure that their nest egg will last through retirement, in this article on Money. Hiring an advisor, possibly a certified financial planner, is recommended, as the expert has the expertise to provide guidance on developing a more sustainable retirement plan. The client, however, should be wary of any financial product that the adviser offers, as well as other those who may take advantage of their fortune. “This is tantamount to winning the lottery, when cousins come out of the woodwork, and children want cars,” says an expert.

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