"A key component of a comprehensive and effective retirement plan includes estimating potential costs and risks in retirement, including those associated with health care and long-term care. Four in 10 FPs and consumers surveyed agree this is one of the most difficult aspects of retirement planning.... [W]hile most FPs say they are discussing these topics, less than half of consumers recall these discussions: 96% of FPs say they talk about physical health issues with clients, but only 44% of clients recall those conversations. 90% of FPs report discussing cognitive decline, yet just 31% of clients say the topic came up." MORE >>
"Made a mistake? The IRS might be more lenient if you relied on the right professional.... IRS says: you cannot claim advisor error when you are the administrator.... A favorable PLR might come down to who administers the account.... Be careful when relying on articles, even from industry experts.... Can you rely on artificial intelligence for IRA guidance? ... IRA rules are complex, and solutions often depend on facts unique to each case." MORE >>
"[The authors] determine how retirees should manage payouts from defined contribution plans to balance trade-offs between consumption and health care cost shocks, using both retirement plan assets and annuitization. [The] analysis explicitly integrates the role of taxes, required minimum distributions, bequest motives, and the possibility of retiree insolvency.... [P]ayout annuities, especially deferred and variable annuities, can be quite valuable for retirees, even when they face health shocks in later life." MORE >>
27 pages. "Those in plans that offer flexible distributions are about 35% more likely to remain in the plan three years after retirement, are 15%-25% less likely to cash out their balance in the first year, and have balances that are nearly twice as high as those in plans without flexible options. Nearly 3 in 10 retirees stay in the plan three years after retiring, and about a third of them make withdrawals. " MORE >>
"[R]etirees in plans that offer flexible distribution options were 35% more likely to remain in-plan three years after retirement. They were also between 15% and 25% less likely to cash out their balances in the first year, compared with those who did not have similar flexibility." MORE >>
"A major reason not to set your retirement plan on autopilot: sequence of returns risk. A flexible strategy with cash reserves and smart withdrawal moves can help ensure that a bad market doesn't sink your golden years." MORE >>
"Use Form 4972 to figure the tax on a qualified lump-sum distribution ... you received in 2025 using the 20% capital gain election, the 10-year tax option, or both. These are special formulas used to figure a separate tax on the distribution that may result in a smaller tax than if you reported the taxable amount of the distribution as ordinary income." MORE >>
"Without emergency savings, employees are twice as likely to turn to workplace retirement accounts to cover unexpected costs ... [As] of 2024, nearly 6% of employees have taken a hardship withdrawal from their retirement account compared to roughly 2.7% in 2018, and retirement plan loans have been on the rise since 2021, rising from 6.5% to 9.2%.[1]" MORE >>
Rev. Dec. 2025; 86 pages. "This publication gives you the information you need to determine the tax treatment of your pension and annuity income under the General Rule.... The General Rule is one of the two methods used to figure the tax-free part of each annuity payment based on the ratio of your investment in the contract to the total expected return." MORE >>
72 pages; Nov. 3, 2025. "Reminders: [1] Excise tax relief for certain 2024 required minimum distributions (RMDs).... [2] Income on corrective distributions of excess contributions.... [3] Modification of required distribution rules for designated beneficiaries.... [4] Simplified employee pension (SEP) and SIMPLE plans.... [5] Deemed IRAs.... [6] Statement of required minimum distribution (RMD).... [7] IRA interest.... [8] Net Investment Income Tax (NIIT). " MORE >>
"If involuntary distributions are selected in your plan document, you must follow the mandatory cash-out rules. That means reviewing all terminated participant accounts at least once a year and taking the necessary action to distribute eligible balances. These distributions can occur without the participant’s authorization, as long as you’ve provided at least 30 days’ notice of the pending distribution." MORE >>
"The fact that some of the people are not related to John does not disqualify them from being an EDB. Yes, the 'random guy on the train' would be an EDB on John's IRA simply because he is not more than 10 years younger than John. Being older qualifies. That's why John's father and his mailman are also EDBs." MORE >>
"The [IRS] has provided reporting relief from the requirement to include a code 'Y' on a 2025 Form 1099-R when reporting qualified charitable distributions from an IRA." MORE >>
"If your risk tolerance is relatively high, you prefer increased spending early in retirement, and you aren’t overly troubled by the thought of decreasing discretionary spending in the future, you may wish to use more aggressive assumptions and/or lower funding targets." MORE >>
"The constant real spending assumed by the 4% rule isn't what the majority of retirees prefer. Advisors need to help clients enjoy their savings during early retirement while protecting against inflation and other long-term risks. Delayed Social Security claiming can help provide an inflation-protected lifestyle safety net." MORE >>
"If you're newly married or planning to tie the knot, it's important to understand how your IRA and 401(k) accounts are affected. From changes in contribution limits and tax-filing status to updating beneficiaries, this guide explains what every couple needs to know to avoid costly mistakes and make the most of their retirement savings." MORE >>
"[A] trust should not be named as beneficiary of an IRA unless there is a legitimate reason to do so.... [1] Minor as Beneficiary.... [2] IRA beneficiary is someone who may need help with managing the IRA funds and taking required distributions, even if the beneficiary is an adult.... [3] Creditor protection.... [4] Control.... [5] Second marriages." MORE >>
"The Emergency Relief for Federal Workers Act [S 2966] would clarify that lapses in appropriations qualify federal workers to take a hardship withdrawal from the federal government's 401(k)-style retirement savings program and eliminate the associated 10% penalty in those instances." MORE >>
"28% of rollover investors stayed in cash for at least 12 months, with minimal changes after the first three months following the contribution.... The median job switcher saw a 10% increase in pay, but a 0.7 percentage point DECLINE in their retirement saving rate when they switched employers.... [O]nly an average of 15.3% gained a plan upon job change. while an average of 20% lost access to a plan via work." MORE >>
"William Bengen now says a withdrawal rate of 4.7% may be more appropriate. Retirees who can cut back a little during rough market years tend to do better than those who consistently withdraw the same amount, no matter what happens. Another withdrawal strategy is to align annual withdrawals with remaining portfolio value, thereby adapting to market fluctuations." MORE >>
"Nearly half of respondents ... stated they just process all requests or allow self-certification while 20% stated that the plan limits the number of hardships per year. Some respondents state it's not their job to oversee it and people should be allowed to manage their money as they see fit, while others limit access. Most provide additional education or assistance with resources." MORE >>
"In general, clients who think their tax rate will fall in retirement should not make the conversion ... But many high-earning clients end up staying in the top tax bracket in retirement. For clients whose income remains stable, there's "a slight mathematical advantage to the Roth[.]" MORE >>
73 pages. Rev. Dec. 2025; pub. Sep. 30, 2025. "What's New ... [1] Beginning in 2025, IRA references in these instructions follow a revised naming convention.... [2] Form 8915-F includes a new line 5a. This line directs taxpayers to add the amounts from column (a) of lines 2, 3, and 4, and enter on line 5a the portion of that sum not attributable to qualified disaster distributions." MORE >>
"If your (or your financial advisor's) assumptions are too conservative, future experience will be more favorable than assumed, and your Funded Status will increase over time. Conversely, if your assumptions are too aggressive, future experience will be less favorable than assumed and your Funded Status will decrease over time.... [This post attempts] to quantify how conservative certain sets of assumptions are when using the Actuarial Financial Planner (AFP) with different Funding Status targets." MORE >>
"[One] way that an employer can prepare for a disaster is to provide for hardship distributions to plan participants from their retirement accounts. An employer that has put them in place would do well to refresh its memory regarding how they work and the rules and regulations governing them." MORE >>
