The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 substantially changed estate planning and administration for individual retirement accounts (IRAs). Eliminating the “stretch” in favor of the new ten-year rule initially seemed a simplification. However, in practice, this is far from the case. Most of the pre-SECURE complications remain, and the Act introduced new rules to plan for and navigate.
Moreover, over two years passed between the 2020 statutory effective date and the publication of the proposed regulations in early 2022. Compliance with the new rules has been difficult, if not impossible, for many recent deaths. However, the final regulations should provide relief and certainty.
The SECURE 2.0 Act, passed as part of the omnibus spending bill signed by President Biden on December 29, 2022, increased the age for the required beginning date (RBD) for required minimum distributions from 72 to 73 starting on January 1, 2023, for individuals who reach age 72 after December 31, 2022. The RBD will be increased to age 75 starting on January 1, 2032, for individuals who reach age 74 after December 31, 2032. Other SECURE 2.0 Act provisions are also of interest to estate planners, including a surviving spouse's option to elect to be treated as the deceased employee for purposes of the required minimum distribution rules.
Specifically, this course will provide a timely update on the following:
- The new ten-year rule distribution requirements
- Exceptions to the ten-year rule and how to compute required minimum distributions
- When the five-year rule or “ghost” life expectancy rule might apply
- Distribution requirements after the death of a beneficiary
- New terminology, such as the applicable multi-beneficiary trust
- Drafting for successor or contingent beneficiaries without accelerating distributions
- When remote or contingent interests can be ignored when calculating distributions
- Surviving spouse distributions under the new rules, including when the IRA is held in trust
- Flowcharts to help you quickly process and apply the new rules Provisions of SECURE 2.0 of interest to estate planners
Presented by: Robert S. Keebler, CPA/PFS, MST, DAEP, CGMA
CLE: 1.0 general credit
Approved States: CA, CO, FL, GA, IL, NJ, NV, NY, OK, PA, TN, UT, VT
(AK, AZ, CT, MO, ND, NH, TX eligible to claim credit)
We will supply you with the information needed to apply in other states.
Contact [email protected] for CLE assistance.
WealthCounsel members: This CLE eligible program is complimentary for WealthCounsel members. Please access and view it via the member website for optimal experience and inclusion in your CLE Profile Account.
