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

How to get retirement income from your home
The Center for Retirement Research at Boston College has released a new e-book that guides retirees on how to handle their home and supplement their retirement income. The e-book advises retirees to consider downsizing first before taking a reverse mortgage, according to The Wall Street Journal. “You want to be in the ‘right’ home for retirement as soon as you can. And it’s costly to downsize after a reverse mortgage, as the fees and interest will reduce the equity you have in your current home,” the authors write.  --The Wall Street Journal

To withdraw, or not, from a 401(k)—that is the question
Clients who withdraw from their IRA before they turn 59½ are required to pay a 10% penalty, but those who retire when they reach 55 won't get any penalty when taking a withdrawal from their 401(k) plans, according to this article on CNBC. Still, experts tell clients to avoid a withdrawal from their retirement accounts as much as they can. "I can think of only one scenario where I could support use of [retirement funds] for something other than retirement, and that is if you have been diagnosed with a terminal illness," says Ric Edelman, chairman and CEO of Edelman Financial Services.  --CNBC

Here's the average 401k at retirement. Are you on track?
Although investment management specialist Vanguard announced that the average workplace retirement plan balance reached $100,000 for the first time at the end of 2013, the median was only $31,396, which means many workers still haven't saved enough, according to this article on Motley Fool. Having $101,650 in a 401k balance may be positive for young workers who have plenty of years ahead to grow their investments, but not for those in their 50s or 60s. Read some strategies that workers need to consider if they want to improve their financial prospects in retirement.  --Motley Fool

Consider taxes before consolidating retirement accounts
A disabled client who has a 401(k) plan and inherited his wife's plan is advised to consolidate these accounts into an IRA, as he can take withdrawals without paying a 10% penalty, according to MarketWatch. He may also consider converting a portion or all of the IRA money to a Roth, and while he would pay taxes, such a move would be good decision especially if the current tax rate turns out to be lower than future tax rates.  --MarketWatch

How to save for retirement when you're self-employed
A solo 401(k) plan is a good option for self-employed clients who want to save for retirement, according to this article on DailyFinance. Other retirement-saving vehicles available for self-employed people are the Simplified Employee Pension IRA and the Savings Incentive Match Plan for Employees, also known as Simple IRA. Read the tips on how to take advantage of these accounts.  --DailyFinance

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