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

A way around restriction on IRA rollovers

Taking a Roth conversion is an option for clients who are in need of a short-term, tax-free loan, according to this article in The Wall Street Journal. While the Internal Revenue service allows only one IRA rollover per year, clients are allowed to convert a portion of their IRA to a Roth account as many times as they want and hold the amount within 60 days before using the money to open a Roth account. –The Wall Street Journal

When should clients take their IRA RMD?

Many retirees opt for an automatic monthly transfer for required minimum distributions from their IRAs but such a method may pose a problem as the provider may continue transferring the amount even after the account holder dies, according to this article on Morningstar. Retirees may also take the RMD early in the year so they will no longer be worried about it throughout the year. Taking the RMD late in the year is another option that also offers advantages for those in specific circumstances. –Morningstar

CFPB warns seniors on reverse-mortgage advertising

Seniors should be warned of the deceptive advertisements on reverse-mortgages which claim that these mortgages have the support of the federal government or say nothing about loan balance repayments, according to the Consumer Financial Protection Bureau. “Incomplete or inaccurate information in a (reverse mortgage) ad can cause older Americans to make the wrong choice that jeopardizes their financial security,” said Richard Cordray, the bureau's director. “They could run out of money for their day-to-day expenses or they could even lose their homes.” –MarketWatch

America’s seniors find middle-class ‘sweet spot’

The middle class consists mainly of seniors who survived the recession that started in 2007 because their finances were buoyed by their income from Social Security, pensions, investments and benefits for delaying retirement, according to an analysis of government data by The New York Times. These are 25 million Americans aged 65 to 74, who came out financially better off and are likely to have a more secure retirement life. “These are people who have been blessed with good economic circumstances, especially those who were able to ride the wave of postwar economic growth. They’re definitely in a sweet spot,” an expert says. –The New York Times

56% of Americans may fall short in retirement because of this

Fifty-six percent of Americans polled by Pentegra Retirement Services said they didn't have a distribution plan for tapping their nest egg in retirement, and this could cost retirees substantially, according to this article on The Motley Fool. Having a distribution plan enables retirees to save considerably on taxes. Pre-retirees are advised to scale back their spending and lifestyle slowly to a "retired" level so they will experience a smooth transition to retirement. –The Motley Fool

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