It’s time to re-evaluate IRAs. Both workers and retirees may need to rethink some of their estate planning considering the newest spending bill. The Setting Every Community Up for Retirement Enhancement (SECURE) Act, part of the massive bill, makes major changes to retirement plan rules, including inherited plans.
The SECURE Act requires that most non-spouse beneficiaries of an IRA withdraw all the money in the IRA within 10 years of the IRA holder’s death. In many cases, these withdrawals would take place during the beneficiary’s highest tax years, meaning that the elimination of the stretch IRA is effectively a tax increase on many Americans. This provision will apply to those who inherit IRAs starting on January 1, 2020. Given these changes, those with retirement accounts need to immediately reevaluate your IRAs in estate plans.
If your estate plan includes a special needs trust that could be a beneficiary of your retirement plan assets it is important to review the trust with your estate planning attorney. Taking the step tp re-evaluate IRAs is an important aspect of preparedness to keep your plan current.
While experts at The Ziff Agency are no substitute for your estate planning attorney, we work closely with our legal colleagues to protect the interests of our clients. It is important to make sure that your life insurance coverage and appointment of beneficiaries are in line with your over-all planning goals and intentions. We’re happy to help you if you need a hand. Contact us here.
(Source: Elder Law Answers)