Our daily roundup of retirement news your clients may be thinking about.
Retirement-age probe could affect firms: Business of law
The American Institute of Certified Public Accountants has urged the Equal Employment Opportunity Commission to halt its investigation aimed at determining whether Deloitte's mandatory retirement rules go against federal employment law, according to this article on Businessweek. The outcome of the probe could have a serious impact on law firms that impose mandatory retirement ages on their partners. The EEOC might rule that firms calling themselves partnerships are not to be considered "an old-style partnership of three or four members, a decision that would make these firms liable under the Age Discrimination in Employment Act. --Businessweek
6 networking tips for retirees
While a financial plan is just as important in retirement planning, retirees also need to stay connected to enjoy their sunset years, according to this article on USA Today. To achieve this, retirees should take part in retirement groups that share the same interests, create a networking system composed of friends or loved ones, and have a regimen of retirement activities, such as getting active in social media and attending a professional meeting every week. Trying out new endeavors or joining book clubs are just two examples that can help retirees continue being socially active. --USA Today
Will your retirement savings last?
An 80% to 90% probability that retirement savings will last into a person 90s is a safe estimate for most people, according to this article on CNNMoney. However, there is the possibility that the value of their nest egg may plummet given the stock market's volatility, which occurred recently. Clients are advised to develop a retirement income plan and keep track of it over time, so they can adjust their plan accordingly instead of watching their savings slump and then dealing with the crisis afterwards. --CNNMoney
How to find out what youre paying for your retirement account
Retirement savers should have an initiative to know the fees they pay in their 401(k) and other retirement plans so they can act to minimize the costs and boost their potential returns, according to this article on Time Money. A small difference in fees may seem trivial but the impact can be significant. 401(k) participants and IRA holders may check their fund or plan's website or ask their human resources department to know the amount they pay for these fees. --Time Money
How to benefit from new IRS ruling on Roth IRA conversions
Retirement savers stand to gain from a new IRS ruling that enables taxpayers to roll over their after-tax contributions into a Roth IRA, according to this article on MarketWatch. The conversion doesn't result in any tax liability because these contributions had been previously subject to tax. Read the three ways by which retirement savers can benefit from the agency's ruling. -- MarketWatch
- IRS Offers Guidance on After-Tax Rollover Allocations
- One Third of Americans Lack Retirement Savings
- Investment Strategies for Rising Rates