The SECURE Act’s 10 Year Rule (Part 2)
In last week’s post, I wrote about the SECURE Act, specifically the change that for most beneficiaries does away with the ability to stretch out the time period by which funds must be withdrawn from these accounts. This change will affect most children who inherit retirement accounts from their parents. Being 25
The SECURE Act’s 10 Year Rule (Part 1)
A recent caller asked me to confirm a change he said he read about relating to required minimum distributions from an inherited IRA. I wasn’t sure exactly what he was referring to so I did a little digging. Before I tell you what I found, probably a little background on the topic
SECURE Act 2.0
At the end of 2019 Congress passed the SECURE Act which contained a number of changes to retirement accounts that I detailed in several blog posts in 2020 and then again in 2021 and 2022 as follow up regulations addressed some unanswered questions. Congress continued to tinker with IRAs and
New IRS Regulations Applicable to SECURE Act – Part 4
In this last post on the new SECURE Act regulations we’ll cover how naming a trust as a beneficiary of a retirement account is affected by this new law. First, however, lets look at the problem of naming a trust as beneficiary and how the law before SECURE Act treated trusts. Before
New IRS Regulations Applicable to SECURE Act – Part 3
In this third post on new proposed IRS regulations applicable to the SECURE Act, I cover cases where a disabled individual is the beneficiary of a retirement account. Before I do, however, let’s briefly review the changes made by the SECURE Act. The law, which became effective for 2020 tax year,
New IRS Regulations Applicable to SECURE Act – Part 2
The subject of last week’s post was the proposed regulations concerning the SECURE Act which was passed by Congress and signed by President Trump at the end of 2019. This law made significant changes to the rules concerning IRAs and other tax deferred retirement accounts. To briefly summarize, while the new law
New IRS Regulations Applicable to SECURE Act
I last posted about the SECURE Act a year ago. (2/28/21, 3/8/21 and 3/14/21) This law was passed by Congress at the end of 2019 and it included significant changes concerning retirement accounts, including IRAs and employer sponsored tax deferred accounts such as 401ks. The law was mostly negative although it did
How the SECURE Act Changed Estate and Long Term Care Planning – Part 2
In last week’s post I reviewed the stretch provision of the tax laws that apply to retirement accounts such as IRAs and 401ks. These laws allowed tax deferred accounts to remain tax deferred for a longer period of time by allowing certain beneficiaries to “stretch out” the time within which they
How SECURE Act Changed Estate and Long Term Care Planning – Part 1
At the end of 2019 Congress passed the SECURE (Setting Every Community Up for Retirement Enhancement) Act which made some significant changes to retirement accounts - some positive and some negative. I wrote about it a bit when the law was passed (See posts 1/5/20 and 1/13/20). In the year plus since
The SECURE Act – Part 2
In last week’s post I reviewed the changes to retirement accounts under a new law called the SECURE Act. I started with the positive changes but not all about the new law is a plus. The SECURE Act severely limits the ability of retirement account beneficiaries to stretch out the