After passage of the SECURE Act of 2019, non-spouse IRA beneficiaries are now required to liquidate their inherited IRAs by the end of the 10th year. Often, that means they’ll be withdrawing taxable income from the inherited IRAs during their peak earning years – great gift for Uncle Sam, but not so good for the kids.
Looking for retirement security?
Government spending has been out of control for decades and Congress needs to raise revenue. So, they passed The SECURE (Setting Every Community Up for Retirement Enhancement) Act in December 2019. It may secure the government’s future; but, one provision may make your heir’s retirement a little less secure.
IRAs are popular choices as a retirement vehicle, today holding over $11 trillion in assets, estimated to comprise more than one-third of all retirement assets. What’s interesting is that naming trusts as IRA beneficiaries has become more common.
Do you know what a systematic Roth conversion is? It’s worth knowing!