Paul L. Caron

Thursday, January 21, 2021

Kaplan: Estate Planning For Retirement Benefits After The SECURE Act

Richard L. Kaplan (Illinois), Estate Planning for Retirement Benefits after the SECURE Act, 46 ACTEC L.J. 79 (2020):

This brief essay examines one of the most significant intersections of Elder Law and Trusts & Estates – namely, distributions from defined contribution retirement plans after the participant dies. Particular attention is paid to recently enacted statutory changes, including the end of so-called “stretch IRAs,” which allowed non-spouse beneficiaries to spread withdrawals from inherited retirement accounts over their lifetimes. This essay also addresses strategic considerations in designating beneficiaries for such accounts.

Retirement accounts have numerous planning considerations regarding when withdrawals should begin and which non-spousal beneficiaries should take over these accounts when the original accountholder passes away. Recently enacted changes alter the time when RMDs must begin and radically affect optimal tax strategies for non-spousal beneficiaries who inherit these accounts.

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