New Legislation on Estate Planning – The SECURE ACT

Video Transcription

Congress is considering legislation on some inherited retirement money that could spell trouble for traditional estate planning strategies. In the house, the bill is called the “secure act”. And one of its provisions would restrict the length of time a person can hold on to that pot of 401k or IRA money mom or dad left behind.  It does not apply to spousal inheritance.

The proposal to eliminate the “Stretch IRA” as it’s called, passed the house overwhelmingly. The senate, meanwhile, has a similar plan that would require a 5-year payout.

Estate planning attorney Rebecca Doane says:

“The potential tax burden of faster distributions from inherited retirement accounts will increase the need for proper estate planning and potentially more strategic Roth conversions during the life of the account owner, adding additional complexity to retirement and estate planning.”

So if you have large IRA or 401k that will go to someone other than your spouse, call Doane and Doane at (561) 656-0200 or log on to Protecting your assets for your loved ones.