Most us know by now that the SECURE Act- or the “Setting Every Community Up For Retirement Enhancement” act has finally become law.
Many of us are cheering some of the more popular aspects of the new law, like the hike in the required minimum distribution from 70/12 to 72, but there are other aspects that will have a significant impact on your estate planning: namely the elimination of the stretch i-r-a. In short, that sizable IRA or 401k that your accumulated for retirement, can still be passed to your children- but they will only have 10 years to take the distribution, no more saving it for *their retirement. Estate planning attorney Rebecca Doane says that’s why it’s important to review your estate plan, to make sure your beneficiary designations are filled out correctly. And that’s not all:
“If they’ve made a beneficiary designation to a trust, they’ve reviewed whether it should be a conduit trust or an accumulation trust. Another aspect people should look at is whether they should flip their IRA and pay the tax upfront from a regular IRA to a Roth IRA which is going to be inherited by their children without paying tax.”
There are other aspects of the secure act that will take affect over the next two years so it’s important to work with an estate planning attorney to stay on top of the changes. Call Doane and Doane today. Or visit doaneanddoane.com.