Latest Strategies to comply with the Secure Act
The SECURE Act brought sweeping changes to the post-death tax treatment of qualified retirement accounts. Specifically, it eliminated the prior “stretch” treatment of post-death distributions for most non-spouse beneficiaries, making them subject to the so-called 10-Year Rule. The Act also mandated the full withdrawal of certain accounts within 10 years of the accountholder’s death for most non-spouse beneficiaries. Further, it created a new type of beneficiary: the eligible designated beneficiary (EDB). These are changes that many clients may not be aware of, especially those who haven’t reviewed their retirement or estate plans in recent years.