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

The stealth pension mortgage on your house
States with unfunded public employee retirement obligations will have to rely on real estate property as their ultimate collateral to deal with the risk, writes experts on The Wall Street Journal. "The affluent can escape sales and income taxes by moving to a new state—but real estate stays behind," explain the experts. "Property values must ultimately support the obligations that politicians have promised, even if those obligations aren’t properly funded... Whether or not unfunded obligations are paid with property taxes, it’s the property that backs the obligations in the end."

Mortgage interest tax deductions cost the federal government $68.2 billion in 2012, according to an expert.
Bloomberg News


You may be overlooking this reason to delay Social Security benefits
Seniors are advised to consider the amount of their Social Security retirement benefit and their taxable income before deciding when can file for the benefits, according to this article on CNBC. That's because up to 85% of their benefits will be taxed at the federal level if they receive more income than the set limit. "It's very common for people to believe they're not taxed on their Social Security. A lot of people are surprised when they realize they are taxed on that income," says an expert.

Taxes are on sale: Here’s how to take advantage
Keeping too much money in a tax-deferred account such as a traditional 401(k) plan or a traditional IRA could mean a sizeable tax liability in retirement, according to this article on Kiplinger. To avoid a hefty tax burden in the future, seniors have the option of converting some of the assets into a Roth account or move some of the funds to an after-tax account. They may also consider using the funds to buy a life insurance policy to create a tax-exempt benefit for their heirs.

Saving in a 401(k) for the first time? Here’s what you need to know
Young workers will be better off saving for retirement early using their workplace 401(k) plan, writes an expert on MarketWatch. The plan offers compounded growth on investments, valuable tax benefits and matching contributions, explains the expert. First-time 401(k) participants are advised to understand the basic rules and the tax implications of contributing to these accounts to take advantage of the benefits. For example, clients who contribute to a traditional 401(k) can see a lower taxable income, while those who expect to move to a higher tax bracket in retirement can save on taxes if they contribute to a Roth account.