Retirement withdrawals

The Pension Benefit Guaranty Corp. is facing a $54 billion deficit for insuring multiemployer plans in unionized industries, says the GAO report.

If the client makes a mistake, they are advised to take the RMD as soon as they discover it so they can ask the IRS for a waiver of the penalty.

Retirement plans may decline to offer delayed RMDs, plan loans, stretch and hardship distributions and a host of other legally sanctioned tax maneuvers.

Seniors are more likely to opt for the standard deduction, which increased under the new tax law, but those who want to maximize their deductions have several considerations.

A recent ruling by the U.S. Labor Department could open the door for automatic 401(k) transfers between employers, which means fewer workers will be tempted to cash out.

One approach to determine a retirement withdrawal rate is to set a fixed percentage of their portfolio every year, says an expert. But there are other strategies, as well.

Compared to lower earners, clients with moderate and higher incomes will owe more taxes on the distributions from tax-deferred accounts after they retire.

They are advised to take the mandatory distribution days before the deadline to ensure that they get their withdrawal processed in time.

Despite Social Security's financial woes, the revenue shortfall can be easily fixed, say experts at Boston College Center for Retirement Research. But it will only go so far in paying for living expenses.

Workers looking to retire comfortably are more in need of professional guidance than they realize — and there are a lot of them.

What are the best strategies for clients looking to tap assets while minimizing penalties?

The Trump administration is considering pushing back the age at which retirees have to take required minimum distributions from tax-deferred retirement account.

Waiting until your 70th birthday is the much-discussed strategy to maximize benefits. But in some circumstances, you won't miss out if you file earlier.

IRS rules allow clients in certain circumstances to tap their retirement accounts before the age of 59 1/2 without a 10% penalty. But this still should be considered a last resort, an expert says.

The guideline used a specific set of assumptions: a retirement lasting 30 years with savings in a tax-deferred account and nothing left for heirs. Change just one and your “safe” withdrawal rate may differ.

Retirees will owe taxes for up to 85% of their Social Security benefits if their adjusted gross income plus nontaxable interest exceed a certain threshold.

Plan design features like automatic enrollment and automatic increases are having a positive impact. Such steps are designed to increase participation even from people who may be suffering from inertia, says a researcher.

Many single baby boomers opt to stay put in retirement because they have no children who would advise them to move to an assisted living or continuous care community.

Couples born many years apart need extra guidance as they prepare for their post-work lives.

Clients are advised to start looking for coverage in the marketplace, which will be open for 2019 enrollment from November 1 through December 15.