Estate Planning for Retirement Benefits: IRS Regs, 10-Year Rule for IRAs, RMDs, Planning for Spouse and Minors

This CLE/CPE webinar will guide trust and estate counsel on the complexities in estate planning in light of IRS rules and regulations regarding inherited individual retirement accounts (IRAs), required minimum distributions (RMDs), and trusts receiving retirement benefits. The panel will discuss key provisions impacting estate planning under the IRS rules and regulations, the SECURE Act and SECURE 2.0, mechanisms to avoid pitfalls concerning inherited retirement benefits, plan transfers, required distributions, and other essential items to ensure optimum planning.

On July 19, 2024, the IRS issued final regulations for the RMD rules. Effective as of Sept. 17, 2024, the final regulations reflect changes made by the SECURE Act and SECURE 2.0 impacting retirement plan participants, IRA owners, and their beneficiaries. In addition, the IRS issued proposed regulations addressing additional RMD issues under SECURE 2.0.

The final regulations provide clarity on the 10-year rule for inherited IRAs, including ensuring that inherited retirement accounts are withdrawn and taxed in a timely manner. Before the SECURE Act and SECURE 2.0, beneficiaries of inherited IRAs could choose a lump sum withdrawal or stretch the withdrawal of RMDs over their life expectancy. Under the final regulations and the 10-year limitation, trusts and estates counsel must carefully plan to minimize taxes and protect beneficiaries.

In addition, beneficiary designations and utilizing IRA trusts must be considered due to the fact that the final regulations include new terminology and definitions, the inclusion of eligible designated beneficiaries (EDB) and category options, and other key issues.

Listen as our panel discusses key provisions impacting estate planning under the final regulations, changes stemming from the SECURE Act and SECURE 2.0, and mechanisms to avoid pitfalls concerning inherited retirement benefits, plan transfers, required distributions, and other essential items to ensure optimum planning.