This CLE course will guide estate planners and advisers on the SECURE Act and SECURE 2.0's impact on estate planning and administration. The speaker will discuss current regulatory and tax rules stemming from the SECURE Act and SECURE 2.0 and challenges for retirement benefits, trusts, and distributions. The speaker will also provide effective estate and tax planning techniques in light of these rules.
The SECURE Act and SECURE 2.0 contain several provisions that significantly changed the planning and administration of estates and trusts. Estate planners, advisers, and attorneys must recognize the impact of the SECURE Act and SECURE 2.0 and understand IRS interpretations, requirements, and pitfalls to avoid.
The SECURE Act includes substantial changes to how IRAs and qualified plans impact estate planning for retirement benefits. It raised the age for required minimum distributions from age 70½ to age 72, which also applies to qualified plans, and eliminates the age limit for contributions to IRAs. It also eliminates the "stretch" distributions from IRAs and qualified plans with limited exceptions. Under the law, beneficiaries must withdraw assets from an inherited account within 10 years of the owner's death, requiring careful planning to avoid unintended tax liability.
If a retirement plan participant doesn't want to leave benefits outright to a beneficiary, the participant must designate a trust as the beneficiary. For a trust to qualify as a designated beneficiary, it needs to be a "see-through trust" that is either a "conduit trust" or an "accumulation trust." Under the SECURE Act, there is an acceleration of distributions to beneficiaries and a potential increase in taxes.
SECURE 2.0 provides key modifications and further expands the previous regulations, including but not limited to plan contributions, distributions, ROTH IRA rules, and other key items impacting estate and tax planning.
Listen as our speaker discusses the SECURE Act's and SECURE 2.0's key provisions and how they impact the planning and administration of estates and trusts, as well as offers best practices for attorneys and advisers.
