Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about
Extending the tax deadline to July 15 creates an opportunity for clients to boost their 2019 contributions to IRAs, according to this article in Fox Business. “There’s never been a date in the tax code, it’s always been tied to the filing deadline,” says IRA expert Ed Slott. “[By extending the tax deadline], they automatically extended the deadline to make an IRA contribution last year.”
There are smart ways for seniors to stretch their limited savings in retirement, according to this article in Motley Fool. For example, they can relocate to a place that offers a lower cost of living or they can give up or downsize their vehicle. Moving to a more tax-friendly state is another strategy for retirees to make the most of their limited savings and avoid outliving their retirement savings, according to the article.
Developing a sustainable withdrawal strategy is crucial for clients to ensure that they won't outlive their retirement savings, writes a CFP in The Washington Post. "Withdraw too much and you could run out of money. Withdraw too little and you might stint on some retirement pleasures you could actually afford," she writes. "Taxes and Medicare premiums should be considered, too, since both could be inflated by the wrong withdrawal strategies."
Whether you’re in search of a roadmap, strategies — or peace of mind for your clients — these recommendations fit the bill.
Lawmakers are considering legislation that would provide economic relief to Americans during the coronavirus outbreak, according to this Barron's article. Some of the provisions would waive the 10% penalty for up to $100,000 in early 401(k) withdrawals and give workers three years to repay the distributions, according to the article. “My concern is that this is more likely to be used by the wealthy for financial planning versus lower- to moderate- income people using it as a financial lifeline,” an analyst says.
